Medical device maker UFP Technologies Inc. said Oct. 13 it is buying packaging specialist Contech Medical Inc. for at least $9.5 million, beefing up its capabilities for catheters and guidewires.
Newburyport, Mass.-based UFP told the U.S. Securities and Exchange Commission it's paying $9.5 million in cash and up to an additional $5 million in performance-based targets if they are met by June 30, to buy Providence, R.I.-based Contech.
In a news release, UFP Chairman and CEO R. Jeffrey Bailly said 70 percent of Contech's customers are also UFP customers, but that the companies provide complementary rather than competitive products.
"We are very pleased to add a new and differentiated medical technology to our growing portfolio," Bailly said. "Contech is an excellent strategic and cultural fit that will continue to make us more valuable to our growing medical customer base."
Contech makes packaging primarily for catheters and guidewires and has about $18 million in annual sales, the companies said. Contech also has manufacturing in Costa Rica.
UFP had estimated thermoforming sales of $9 million last year, according to the Plastics News 2021 ranking. It had total corporate sales of $198.5 million.
Contech President Chris Byrnes said the companies had worked together closely before the acquisition and said UFP is "the ideal partner to accelerate our growth strategy."
UFP said it makes medical devices, sub-assemblies, components and packaging from specialized foams, films, and plastics. It said it also makes products for the aerospace, defense, automotive, consumer, electronics, and industrial markets.