Medical molder Phillips-Medisize Corp. is being bought by private equity firm Golden Gate Capital.
The two firms announced a definitive agreement on May 7 and said the deal should close “in the coming months.” They did not disclose terms.
The announcement confirmed recent speculation that Kohlberg & Co. LLC was negotiating to sell the company. A recent Wall Street Journal report indicated the sale price could be as much as $800 million, or about 10 times Phillips-Medisize's estimated earnings before interest, taxes, depreciation and amortization. Golden Gate would not comment on the figures, and Phillips-Medisize did not have any comment beyond the news release.
Phillips-Medisize of Hudson, Wis., is a major injection molder that says it does 75 percent of its business in health care applications such as medical devices, pharmaceutical packaging, drug delivery, glucose meters, drug inhalation devices, and disposable surgical devices and diagnostic components. The company also is a player in defense, automotive and consumer markets.
“Golden Gate's financial support, successful track record of backing manufacturing companies and deep industry relationships will help perpetuate the company's strong momentum and further solidify our market-leading position,” stated Phillips-Medisize President and CEO Matt Jennings in a news release.
Golden Gate of San Francisco lists its major portfolio industries as financial services, industrials and energy, information technology and business services, retail-related markets, software and technical hardware, telecommunications and semiconductors. It has no other health care related business but its industrial companies have expertise in design, production and supply-chain management. Golden Gate has about $12 billion in capital under management.
Phillips-Medisize provides a strong design and manufacturing platform with global scale, noted Golden Gate managing director Rajeev Amara in a news release. He indicated Phillips-Medisize is poised to grow from the trend among original equipment manufacturers to outsource medical component needs. Golden Gate will invest in the molder to support its growth, he added.