The acquisition is expected to complement DuPont’s existing portfolio for biopharma and pharma processing, medical devices and packaging, including Tyvek Medical Packaging and Liveo silicone solutions
DuPont to buy Spectrum Plastics. (Credit: Spectrum Plastics Group)
DuPont has signed an agreement to buy speciality medical devices and components maker Spectrum Plastics Group from AEA Investors for a purchase price of $1.75bn.
The net purchase price after tax attributes is $1.72bn which will be paid from existing cash balances, subject to customary transaction adjustments.
The deal is anticipated to complete by the end of the third quarter of this year upon receiving regulatory approvals and other customary closing conditions.
Spectrum, engaged in advanced manufacturing of medical components, focuses on key therapeutic areas like electrophysiology, structural heart, surgical robotics and cardiovascular.
The deal is expected to complement DuPont’s existing portfolio for biopharma and pharma processing, medical devices, and packaging, including Tyvek Medical Packaging and Liveo silicone solutions.
According to US-based DuPont, the acquisition of Spectrum will bolster its position in low cyclicality healthcare markets. Upon completion of the deal, around 10% of DuPont’s consolidated revenue is expected to come from healthcare.
The company will now have Spectrum’s advanced manufacturing capabilities and customer relationships with the major medical device original equipment manufacturers (OEMs).
DuPont executive chairman and CEO Ed Breen said: “We have been focused on Spectrum for a long time and our team is extremely excited for this opportunity.
“Spectrum is a compelling strategic complement to our existing healthcare portfolio, which already includes businesses with best-in-class innovation, deep customer relationships and with strong growth and profitability.
“With this combination, we’ll be able to offer customers additional innovation and manufacturing capabilities with a broader and more integrated solution set.”
Spectrum Plastics was established in 2017 and was acquired by AEA Investors in 2018. The company offers a range of capabilities like extrusion, injection moulding, laser processing, and flexible packaging and film.
AEA Investors partner Rahul Goyal said: “Spectrum is a best-in-class company for the development and advanced manufacturing of speciality medical devices and components.
“Through investments in the commercial and engineering organizations and expansion of its manufacturing operations, Spectrum has enhanced its capabilities and offerings in medical end markets and achieved significant growth and increased profitability.”