by John R. Fischer
, Senior Reporter | September 27, 2023
Parts manufacturer Zeus Company, which molds plastics into different shapes to produce medical device components, is mulling over a potential sale of its business for $4 billion or more.
According to Reuters
, the company is in the early stages of a sales process and is consulting with investment firm Goldman Sachs Group about the prospect. A sale would include its debt and is expected to be attractive to buyers and private equity firms.
The company was founded in 1996 in New Jersey by Frank Tourville and started out making tubes for medical applications. Today, it is headquartered in Orangeburg, South Carolina, and produces components for healthcare, aerospace, and automotive industries in the U.S. and abroad.
Within the medical market, it designs parts for cardiac rhythm management, cardiovascular, peripheral, neurovascular, structural heart, and gastrointestinal endoscopy solutions, including catheters, as well as for 3D printing devices and surgical suites. It also has certified testing and analytical laboratories with a range of materials science capabilities.
Sources, who requested anonymity from Reuters, said that the company may opt not to go through with a sale.
Zeus has over 1,500 employees at nine facilities in the U.S., Europe, and Asia. Its annual earnings before interest, taxes, depreciation, and amortization (EBITDA) is nearly $200 million, reported Reuters.
In 2021, the company began offering contract services following its acquisition of CathX Medical
, a catheter-based contract manufacturer in San Jose, California.
Earlier this month, Zeus opened a new Minnesota facility in Arden Hills, creating over 100 jobs, to house CathX Medical. The site also gives it access to in-house laser cutting, ablation, and welding.
“Establishing a presence in Minnesota will create opportunities for innovation and partnership with our current OEM and medical device customers. It will also open doors for new relationships,” said Steve Peterson, Zeus president and CEO, in a statement.