CHS buys 2 Canadian plastic medical firms in reshoring bid

Medical device maker Canadian Hospital Specialties Ltd. has bought two plastics processing firms to beef up domestic manufacturing and reduce its reliance on imports from outside North America.

The Oakville, Ontario-based firm said it has acquired two other Canadian firms, Stadco Polyproducts Inc., an injection molder in Mississauga, and Respan Products Inc., a medical tubing and mask maker in Erin.

"These acquisitions provide us with the ability to manufacture and supply a greater volume of Ontario-produced medical products for the Canadian and U.S. markets and provide an alternative for health care customers to avoid some of the current challenges associated with sourcing products from overseas," said Mike Canzoneri, president and CEO, in a statement.

Terms were not disclosed.

It said the two acquisitions will add 32 employees to CHS' existing 425 employees. CHS manufactures and distributes a wide range of medical products, including single-use disposable trays, kits, tubing and other products. End markets include respiratory, anesthesia, radiology and vascular products.

Stadco makes thin-walled injection molded products and is one of the largest suppliers of medicine cups in North America, CHS said. Respan focuses on oxygen and aerosol therapy markets.

CHS said its Oakville plant is in the midst of a C$3.8 million (US$3.0 million) facility upgrade.

Earlier this year, it said it received C$1.9 million ($1.5 million) from the provincial government's Ontario Together Fund to expand the Oakville plant to build up domestic manufacturing and emergency readiness, adding 50 jobs in the process.