Private-equity owned Action Fabricators Inc. of Grand Rapids, Mich., purchased CSI Medical Inc., a contract manufacturer in Gallatin, Tenn., for an undisclosed sum and will operate it as a wholly owned subsidiary.
As part of the deal, which closed in 2016, CSI will manufacture and distribute disposable and non-disposable medical and health products for another Action subsidiary called Laminin Medical Products.
Laminin is named after the cell-adhesion molecule that holds the human body together. Both Action and CSI convert adhesive-backed flexible materials, such as plastics, foams, felts and rubbers. Sales for Action and CSI totaled nearly $69 million in 2016, according to company officials.
CSI has the extra capacity to take on the services of Laminin Medical Products, CSI CEO Fred Knox III said in an email. Knox and the company's 75 employees will all remain in their positions and continue to operate in the present facilities under the present name. Laminin will be a CSI brand.
Laminin Medical Products had operated in Kentwood, Mich., offering services from product design to complex large system manufacturing, including applications that require special materials for biocompatibility, skin sensitivity and cytotoxicity testing. The equipment and six staff have moved to the CSI site in Tennessee, which Knox said is adding a second shift this quarter. Two sales employees also have been hired recently and plans are underway to ramp up marketing efforts.
CSI makes products for wound care, patient monitoring, medical disposal and surgical items, according to its website. Knox called the acquisition a good fit for CSI, and its employees and clients.
“With the resources that Action brings we have the opportunity to continue to grow the company and to be a collective leader in our industry,” Knox said. “I am looking forward to the expansion of our products, services and capabilities, which will allow us to better serve our clients.”
Action has had the backing of a partner, the small private-equity group River & Associates in Chattanooga, Tenn., since 2015. Working on its sixth fund, River looks for well-managed, growth-oriented companies, Action CEO Jon Rudolph said in an email.
“As part of our strategic initiative to reduce our automotive content, which was 70 percent in 2015, we acquired CSI Medical,” he added.
In addition to reducing the company's automotive content to 50 percent, CSI offered a modern facility with high-end technology, a presence in the southeastern United States and good people, according to Rudolph.
“With a deep well of industry experience, top-notch leadership, a thriving workforce, and values and operating philosophy that match ours, CSI Medical is exactly the type of company we are excited to have join our team,” he said.