Newburyport, Mass.-based medical device manufacturer UFP Technologies Inc. has acquired DAS Medical Inc., a maker of medical sheets, covers and pouches, for $75 million.
"Adding DAS Medical to the UFP MedTech portfolio is another important step in our growth strategy," R. Jeffrey Bailly, chairman, CEO, and president of UFP Technologies, said in a Dec. 23 news release. "DAS's expertise in thin film converting and near-shore manufacturing is a perfect complement to our best-in-class RF welding technologies."
The purchase price is subject to adjustment based upon DAS Medical's working capital at closing, and the purchase price may be increased by up to $20 million in earnout payments based upon the performance of the business during the four-year period following the closing, according to a Dec. 23 SEC filing.
DAS, headquartered in Atlanta, also has operations in the Dominican Republic.
"Along with our new facility in Tijuana, Mexico, this adds another low-cost manufacturing option for our customers," Bailly added.
UFP currently shares "key strategic customers," he said, and will be "offering a full suite of services for single-use, flexible material-based medical devices."
DAS and UFP's MedTech team are a good strategic fit, Daniel Lee, DAS's president and CEO, said in the release.
"We both have expertise in creating differentiated solutions leveraging expertise in medical film converting for critical single-use applications," Lee said.
"With access to UFP's sales engine, development engineers and growing technology portfolio, we will be able to accelerate the growth of our proven low-cost manufacturing platform in the Dominican Republic," Lee added.
UFP manufactures components, sub-assemblies, products, and packaging primarily for the medical market. DAS designs, develops and produces of single-use surgical equipment covers, robotic draping systems and fluid control pouches.