Phillips-Medisize Getting Acquired

Electronics manufacturer Molex sees an opportunity to greatly expand its medical device presence by acquiring a major contract manufacturer in the space.

Chris Newmarker

Phillips-Medisize, a significant medical device contract manufacturer, is being snapped up by an electronics manufacturer for an undisclosed sum.

Lisle, IL-based Molex--which is part of Koch Industries--said Wednesday that it is buying Hudson, WI-based Phillips Medisize from its private equity owner, San Francisco-based Golden Gate Capital. The deal is expected to close in the fall, pending customary closing conditions. Phillips-Medisize will operate as an indirect subsidiary of Molex after the acquisition.

Phillips-Medisize has a specialty in the medical device and diagnostics, drug delivery, and primary pharmaceutical packaging markets. A focus on such innovative areas as connected health and biologics drug delivery devices, coupled with expansion into overseas markets, have allowed the company to increase its revenue five times over the past five years, to nearly $650 million in its most recent fiscal year. The company employs 4300 people in manufacturing facilities throughout the United States, Europe, Mexico, and China

"Combined with Molex's expertise in electronics and broad global manufacturing presence, we are confident that together we can significantly expand our medical solutions capabilities globally," Tim Ruff, Molex's senior vice president of business development and corporate strategy, said in a news release.

Phillips-Medisize CEO Matt Jennings, says the two companies are a good fit because they have similar corporate cultures.

"Molex's global scale in electronics, coupled with Phillips-Medisize's strength in designing and manufacturing innovative products for medical device customers, will help us become a global leader in connected health solutions," Jennings said.

Molex appears to be agreeing with S&P's recent assessment of the medical device contract manufacturing space: Long-term prospects are looking good.

Chris Newmarker is senior editor of Qmed. Follow him on Twitter at @newmarker.

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