Medical plastics M&A surge just beginning


Attractiveness of medical plastics processing assets is extremely high and heading higher. As a result, there is significant payback in investment in new equipment for American medical molders and extruders.

Jabil Circuit paid $665 million for Nypro, which had equipment valued at $252.7 million and sales of $1.1 billion in FY 2012.

Venture capital firms that have invested heavily in America medical plastics processing assets in the last five years include: Kohlberg & Co. (Phillips Plastics), Baird Capital Partners and River Cities Capital Funds (MedPlast), and KRG Capital Partners (Vention).

The reasons transcend the obvious growing demand for medical products, which are higher in value than products sold into traditional plastics markets.
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