Plastics News Report
Plymouth, Minnesota -- Global maker of laminated-tubing Essel Propak Ltd has made its second purchase this year of a US medical manufacturer.
Reuters reported 5 Sept that the Mumbai, India-based packaging giant has acquired 74 percent of speciality medical tubing maker Medical Engineering & Design Inc. of Plymouth, Minnesota, through its Essel subsidiary Tacpro Inc. of Campbell, California.
"This acquisition gives us access into a different genre of customers and also flexibility in terms of component-making," Essel president R. Chandrasekhar told Reuters. The acquisition will be funded partly through debt and partly through profit from Essel's medical businesses, Tacpro and Singapore-based Avalon Medical Services Pte. Ltd.
Essel and MED Inc. officials otherwise were unavailable for comment.
MED Inc. has experience in designing and making catheters, custom extrusions and braid-reinforced tubing. According to the company's website, it processes materials including polyether block amides, nylon, polyurethane, polyethylene and polytetrafluoroethylene.
Essel estimates the global medical-device market to be worth $25100 million, with the share of the original equipment manufacturer segment at $2400 million. The firm estimates medical-device sales have an 11.6 percent annual growth rate. According to the company, greater Minneapolis is the second-largest medical-device-producing area in the US, behind California's Silicon Valley.
In April, Tacpro paid $1.2 million for Catheter and Disposables Technology Inc., another Plymouth-based medical tubing manufacturer. Since the acquisition, CDT has received ISO-13485 certification for design control in catheters and transferred three product lines to Avalon, which Essel has positioned as its flagship for medical manufacturing.
Tacpro performs custom extrusion in a range of thermoplastics, including polyolefins, nylons, polyurethanes, thermoplastic elastomers and polycarbonate. Tacpro also produces medical balloons and catheters from nylons, PET and other materials.
Essel posted $295 million in 2007 sales. It employs 2700 in the Americas, Africa, Asia and Europe.