Molex to acquire Phillips-Medisize

Electronics/electrical components maker Molex is to acquire Phillips-Medisize Corporation, a global leader in outsource design, development and manufacturing services for the medical industry that is a portfolio company of San Francisco-based Golden Gate Capital, a private equity investment firm with approximately US$15 billion of capital under management, which bought the firm three years ago. The agreement is subject to customary closing conditions and is expected to close in the fall. Financial terms of the transaction were not disclosed.

Phillips-Medisize, which is headquartered in Hudson, US, specialises in the medical device and diagnostics, drug delivery, and primary pharmaceutical packaging markets. It has a global design network that supports North America, Europe and China and employs more than 4,300 people in 17 production locations throughout the US, Europe, Mexico and China. Phillips-Medisize Corporation will operate as an indirect subsidiary of Molex.

Phillips-Medisize has a talented, experienced and innovative team that has strong customer relationships because of its outstanding ability to serve the unique needs of the medical solutions market,” said Tim Ruff, Senior Vice-President of business development and corporate strategy, Molex. “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.”

Molex and Phillips-Medisize share a similar culture and approach to managing the business that creates strong partnerships built on quality and innovation,” said Matt Jennings, Chairman/President/CEO, Phillips-Medisize Corporation. “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.”

Phillips-Medisize itself has been on an acquisition trail having recently completed its acquisition of Injectronics Corporation, thus expanding its footprint, providing purpose-built facilities in the Northeastern US, a global centre of biopharmaceutical and medical device innovation, and opportunities for continued growth in these areas. Injectronics provides contract engineering and manufacturing services to consumable diagnostics and medical device customers.

It also recently acquired Medicom Innovation Partner, a provider of device strategy, product design and development services with particular focus on personal connected health drug delivery device solutions to meet the needs of the rapidly growing biopharma and specialty pharmaceutical markets. Through this acquisition, Phillips-Medisize said it will bolster its leading position in drug delivery device solutions.

The company has annual sales of over US$700 million with 80% of the total revenue coming from drug delivery, medical device, primary pharmaceutical packaging and diagnostic products such as disposable insulin pens, glucose meters, specialty inhalation drug delivery devices, single use surgical devices and consumable diagnostic components.