Catheter system design and manufacturing firm AdvancedCath Technologies Inc. has been acquired by TE Connectivity's medical division in a $190 million all-cash deal.
Philadelphia-based private investment firm Inverness Graham, which had owned AdvancedCath, announced the deal on April 10.
AdvancedCath offers design, rapid prototyping and manufacturing of special catheters and guide wires for complex surgical procedures, working in metals and a wide variety of plastics including Pebax polyether block amide; nylon; high, low and medium density polyethylene, polyetheretherketone and thermoplastic polyurethane. The company is based in San Jose, Calif., and has facilities in California, Minnesota and Massachusetts and a high-volume manufacturing operations in Costa Rica.
The acquisition marks a continued investment in the medical manufacturing market for TE Connectivity, a telecommunications and electronics component maker based in Schaffhausen, Switzerland. The company changed its name from Tyco Electronics in 2011.
“Today's OEMs are developing innovative procedures that are minimally invasive to improve outcomes and quality of care,” said Terrence Curtin, president of TE's Industrial Solutions business group, which includes TE Medical, in a news release. “The combination of TE's Connectivity and sensor solutions with AdvancedCath's expertise in the medical device market provides customers with an unmatched set of capabilities and technologies that enable future innovations and medical advances.”
Inverness Graham acquired AdvancedCath in 2011 in a proprietary, “non-banked” transaction and combined the then-small, Boston-based company with other acquisitions, including TechDevice MP&E and LSA Laser.
“Over the course of our hold, we executed a significant strategic transformation at AdvancedCath, taking the company from a Boston-based manufacturer of guidewires and related components to a global player in the outsourced design and manufacture of a full range of advanced catheter systems including catheters, guidewires, and balloons for complex interventional applications,” stated Scott Kehoe, managing principal at Inverness Graham in a statement. “Through both organic and acquisitive initiatives and the recruitment of a world-class management team, we fulfilled our vision of building a leading advanced catheter systems solution provider, growing the top and bottom line by over three times and making AdvancedCath a very attractive target for strategic acquisition, exceeding our expectations.”
“Inverness Graham was a great partner in every sense of the word,” said Randall Sword, CEO of AdvancedCath. “They supported us in making a series of strategic moves that enabled the company to grow significantly over the past four years, allowing us to deliver best-in-class advanced catheter systems expertise to our global medical device OEM customers. We are pleased with what we have accomplished with Inverness Graham and look forward to the next chapter as part of TE's Medical business unit.”
AdvancedCath is expected to remain a stand alone business within TE.