Duarte, Calif.-based medical device manufacturer GD Medical Inc. is acquiring Riverside, Calif.-based injection molder Trademark Plastics Inc. for an estimated $42 million.
GD Medical is owned by Huangyan, China-based Zhejiang Gongdong Medical Technology Co. Ltd., a publicly traded maker of disposable plastic medical and laboratory products.
Gongdong Medical said the final purchase price will be adjusted based on liabilities, accounts payable and estimated closing costs.
TPI announced the deal in a Jan. 25 LinkedIn post.
"In 2023, shareholders will infuse capital into TPI in order to properly optimize the business and organizational structure," TPI said in the post. "TPI's objective will be to improve the quality of its products and services, while increasing productivity and efficiency.
"With additional support, TPI will focus on strengthening technology and the production workforce," the LinkedIn post said. "TPI aims to speed up the development of new products and expedite the order delivery cycle."
TPI was not able to respond to questions from Plastics News in time for publication.
The acquisition will help Gongdong Medical expand overseas production capacity "and complement the advantageous resources through the industrial collaboration between Gongdong and [TPI]," Gongdong said in a news release.
The deal will also help to "reduce costs, increase efficiency and promote the company's products in downstream application industries with high-cost performance," it added. "Gongdong and the underlying asset group will share channels and customers."
Gongdong Medical, which was founded in 1985, is traded on Shanghai Stock Exchange.
TPI develops and molds plastic medical consumables, medical parts and other products. Jerry Carty founded the custom injection molder in Rancho Cucamonga, Calif., in 1989 and moved the business to Riverside in 2002. Carty died in 2005.
TPI had estimated 2021 sales of $22 million, according to PN data. It has 130 employees and 51 presses.