Nissha Eimo Technologies Inc. has acquired a majority equity of Winston-Salem, N.C.-based Cathtek LLC, which supplies products for diagnostic and testing and blood collecting devices to medical OEMs.
"This strategic move aligns well with the Nissha Eimo strategy for growth and diversification within the medical market," an Oct. 1 news release by Nissha said. "The market for disposable medical supplies is anticipated to witness a substantial growth spurt, as a recently published market analysis predicts an impressive compound annual growth rate of 17.3 percent from 2023-28."
The acquisition, through Nissha's subsidiaries Eimo Technologies Inc. and Nissha Eimo Acquisition Corp., will integrate Cathtek's quality control systems, technologies, and customer base for medical devices into Nissha Eimo Technologies.
"The principals of Cathtek are professionals with more than 80 years of combined experience in the medical industry," the news release said.
Cathtek employs 43 people located in two Winston-Salem facilities. One facility focuses on clean room injection molding and the second facility hosts clean room assembly. Cathtek is ISO13485 and FDA registered.
"There is no change in leadership or workforce planned [for Cathtek]," General Manager and CEO of Nissha Eimo Technologies, Gary Hallam told Plastics News in an email. The acquisition transition "will be business as usual."
Nissha Eimo ranked as the No. 104 largest injection molder in North America, according to PN's current survey, with $74 million in sales.
"It is the intent that this transaction will have no impact on existing business among Cathtek's
customers," a release by Cathtek said. "All employees will remain active, including current owners and management. There are no changes to facilities, products, or services."
"Cathtek continues to win business with existing and new customers and has many
exciting projects in the pipeline," the release said. "While we believe Cathtek could continue to grow on a standalone basis, we believe Nissha's IMBU and Cathtek together create an even more exciting proposition as we have a large overlap in the commercial focus among our companies."
Kyoto, Japan-based Nissha Co. Ltd. owns Vicksburg, Mich.-based Eimo Technologies Inc., which offers tooling and molding services and decorative and custom injection molding for automotive, appliance, consumer product, and medical markets.
Nissha's industrial materials business unit develops, produces and sells industrial materials, including medical and consumer health care devices and components.
"We believe that Cathtek can quickly benefit from Nissha's engineering and operational
expertise and gain exposure to additional OEMs in Europe, the United States and Asian markets," the release added. "In the long term, our respective companies can jointly provide an integrated value proposition to our shared customer base to further accelerate growth."