US-based DuPont has of speciality medical devices maker Spectrum Plastics Group (Spectrum) from AEA Investors for $1.75bn.
Spectrum serves medical device original equipment manufacturers (OEMs) in the , structural heart, surgical robotics and cardiovascular markets.
The proposed acquisition is complementary to DuPont鈥檚 existing product portfolio in the application areas of biopharma and pharma processing, medical devices and packaging.
It complements DuPont鈥檚 Liveo silicone solutions and Tyvek medical packaging.
DuPont executive chairman and CEO Ed Breen said: 鈥淪pectrum is a compelling strategic complement to our existing healthcare portfolio, which already includes businesses with best-in-class innovation, deep customer relationships and strong growth and profitability.
鈥淲ith this combination, we’ll be able to offer customers additional innovation and manufacturing capabilities with a broader and more integrated solution set.鈥�
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By GlobalDataThrough the acquisition, the company expects to strengthen its position in the medical market.
DuPont stated that the acquisition will result in healthcare contributing about 10% of its overall revenue.
Furthermore, the acquisition is expected to bring Spectrum鈥檚 advanced manufacturing capabilities to DuPont, in addition to its long-term customer relationships with some of the world鈥檚 biggest OEMs in the medical device market.
AEA Investors partner Rahul Goyal said: 鈥淭hrough investments in the commercial and engineering organisations and expansion of its manufacturing operations, Spectrum has enhanced its capabilities and offerings in medical end markets and achieved significant growth and increased profitability.鈥�
Subject to regulatory approvals and other customary closing conditions, the deal is expected to be completed by the end of the third quarter of this year.
