It’s a sellers’ market at all levels of the medtech industry

Originally posted on Medical Design & Outsourcing Ken Fine, co-founder and president of Proven Process, is a popular man these days. Not a week goes by without Fine entertaining flirtations from private equity investors or potential strategic partners, looking to see if he’s ready to cash out of his business after 21 years. Proven Process is a Mansfield, Mass.-based contract manufacturer providing engineering and manufacturing services for companies in the implantable cardiovascular space. It employs 85 workers, has a great reputation, a solid book of business and is still run by its three founders. In short, to a new breed of investors looking to mine this subset of the medical device industry, Fine’s company is the equivalent of a pretty girl at the bar or the guy by the jukebox with the six-pack abs. To private equity, medical device contract manufacturers like Proven Process represent a great opportunity for a “roll-up,” business-speak for the practice of combining 2 to 3 mid-sized companies to create a larger enterprise. For these investors, the sometimes quiet $50 billion industry represents a major opportunity. “I think they still see medical device contract manufacturing as a growth opportunity,” Fine tells me. “The medical device market is still growing, it’s still relatively immature, and there’s still a lot of room there.” Consolidation is the name of the game these days. In 2014, there were more than 57 mergers among medtech...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Contract Manufacturing Source Type: news