Balda AG in Germany has sold its entire operating business to an investment group for 62.9 million euros ($70.1 million), subject to shareholder and regulatory approvals.
Munich-based private equity group Paragon is buying all operational units of the Balda Group: Balda Medical GmbH & Co. KG, based in Bad Oeynhausen, Germany; Balda C. Brewer, Inc. and Balda Precision, Inc., both located in California, and as Balda Medical Systems SRL, based in Romania.
Balda Medical in Germany and Balda C. Brewer in the US do cleanroom injection molding for the healthcare industry and also for the eyewear, electronics and automotive sectors. Balda Precision in the U,S. carries out CNC turning for applications in the aerospace, orthopedic and industrial markets.
Just last month, Balda announced it was consolidating its U.S. production for four California locations — in Anaheim, Irvine, Oceanside and Ontario —to two, Oceanside and Ontario. It was not specific on the timing of the closings. Company officials said the sale will not affect those plans.
Oliver Oechsle, sole management board member of Balda AG, said in a Sept. 23 statement: "Within the scope of our dialogue with investors and possible cooperation partners, we have noticed increasing interest in our operational units. This resulted in specific negotiations, which, ultimately culminated in the agreement that was signed today."
The group's supervisory board is devising a new business model and creating a new name for the Balda AG holding company, which it will present to the annual general meeting on Nov. 19, when shareholders will vote on the Paragon sale.
"The purchase offer by Paragon Partners did not only exceed the fair value calculated by external experts but will also give Balda the opportunity to continue to develop as an individual company," said Oechsle.
Paragon founding partner Krischan von Moeller said: "Under the successful management team, the Balda Group will continue as an operational unit in accordance with today's strategic orientation. We will support Balda to actively make use of growth opportunities in the areas of medical technology as well as pharmaceutical and, if needed, may provide further equity for organic and external growth."