Originally Published MDDI August 2005
Acquisition Puts West Pharmaceuticals and The Tech Group on Same Page
|The Tech Group and West Pharmaceuticals can merge component production with drug-delivery devices.|
After a long and successful partnership between West Pharmaceutical Services Inc. (Lionville, PA) and The Tech Group (Scottsdale, AZ), the two companies have merged. West Pharmaceuticals has acquired the plastic component manufacturer.
“The company cultures are similar,” says Robert S. Hargesheimer, president of the device group at West. “We have areas of mutual interest and respect.”
And that shared interest seems key to successful partnerships, according to Hargesheimer. The companies have worked together for several years, and on May 20, 2005, the acquisition was finalized. “This was a strategic buy,” he says.
West produces device components and systems for drug delivery, in vitro diagnostics, and blood collection. The Tech Group manufactures plastic components and assemblies for medical and personal care. Hargesheimer says that the acquisition will enable a greater presence for both companies across the United States. “It gives customers a broader array of services and locations for material science,” he says.
West purchased nine of The Tech Group's production facilities in Arizona, Michigan, Indiana, Puerto Rico, Mexico, and Ireland. It did not acquire ownership interest in Tech Group Asia. Initial figures indicate that West paid $140 million for assets, with a portion of that purchase price deferred and contingent on business performance in 2005 and 2006. West anticipates the business will add between 2 cents and 5 cents to its diluted earnings per share for 2005 on sales for the remainder of the year. Combined with West's plastics molding, the business will generate estimated sales of $180 million.
The Tech Group will maintain its current business and operating structure and its business and management team will continue to operate in Arizona. West remains committed to ensuring The Tech Group has resources and operating focus to deliver on its commitments and look to future expansion.
West Pharmaceuticals has partners in South America, Europe, Mexico, Japan, and Australia.
Copyright ©2005 Medical Device & Diagnostic Industry