Originally Published MPMN
Originally Published MPMN June 2004
UTI to Acquire MedSource Technologies Inc.
UTI Corp. (Collegeville, PA; www.uticorporation.com)
has agreed to acquire Minneapolis-based MedSource Technologies Inc. (www.medsourcetech.com).
The resulting new organization will be one of the largest contract manufacturing, design, and engineering companies serving the medical technology market. The deal, expected to close in the summer of 2004, is subject to shareholder and regulatory approval.
Both UTI and MedSource offer contract manufacturing, fabrication of critical device components, subassemblies, and finished goods. The two firms also provide engineering, design, prototyping, and other product development services.
"Through this acquisition, we will be able to offer our customers the widest array of capabilities possible, thereby allowing them to maximize return on their own resources and accelerate their speed to market," says Ron Sparks, president and CEO of UTI.
Bruce Rogers, UTI's chairman, adds, "We believe this acquisition is a tremendous strategic opportunity for UTI and are excited about the prospects of combining UTI and MedSource to create the largest player in our fast-growing market sector." Rogers is also the cofounder and managing director of KRG Capital, the lead equity sponsor of UTI.
The newly combined company will be renamed and reorganized into operating divisions aligned with key customer markets. "These focused operating divisions--spotlighting cardiology and cardiac surgery, endoscopy, and orthopedics--allow us to get even closer to the customer and see the markets the way they do," says Sparks.
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