Medical device contract manufacturer Arterex (incorporated as Medical Devices Inc.) today said it has a deal to buy NextPhase Medical Devices.
London-based private equity firm Investindustrial launched Arterex last year after combining Formula Plastics, Kabo, Luc & Bel and ModenPlast. Investindustrial said at the time that the combined company had more than 800 employees, four manufacturing sites and annual sales of around 100 million euros.
NextPhase is a contract manufacturer of Class II and Class III complex electromechanical devices, active implantable devices and single-use disposables, Investindustrial said. NextPhase offers services spanning design and engineering, manufacturing and assembly, quality and regulatory, and supply chain and logistics management services for low-to-medium-volume devices.
Investindustrial did not disclose terms of the latest deal, which is subject to customary approvals. But NextPhase will double the size of Arterex and bring its manufacturing facility count to seven in the U.S., Mexico, Italy and Egypt, the private equity firm said, with 70% of the combined company’s revenue coming from the U.S.
Arterex Chair Charles Stroupe said NextPhase “adds measurably to the Arterex multi-capability business strategy to better serve and grow our customer base” and is “well positioned for growth.”
“This acquisition is transformational and provides highly complementary manufacturing and assembly capabilities to the Arterex platform,” Stroupe said in a news release. “With the resulting capability diversification, this transaction will allow us to create significant synergies and enable us to better service our combined core blue-chip medical OEM customer base and regional specialty customers. Our combined platform will also have substantial production capabilities with a significantly diverse customer base across North America and Europe, well-positioned to continue our global growth strategy.”
Investindustrial said Arterex was its first investment from its 1.1 billion euro Investindustrial Growth III fund.
