by John R. Fischer
, Senior Reporter | November 07, 2023
Ametek has acquired Paragon Medical for $1.9 billion.
Electronic instrument and device maker Ametek, based in Pennsylvania, has acquired components designer Paragon Medical from affiliates of American Securities for approximately $1.9 billion.
Ametek customizes cable assemblies and interconnect solutions that it supplies to original equipment manufacturers that design devices in electrophysiology, neuromodulation, cardiac rhythm management, patient monitoring, surgical instruments, peripheral vascular, and other areas.
With Paragon, which is headquartered in Indiana and has annual sales revenues of approximately $500 million, Ametek says it will have the expertise to create more components for applications in orthopedics, minimally invasive surgery, robotic surgery, and drug delivery.
"Paragon meaningfully expands our presence in the MedTech space and provides us access to attractive new market segments with strong growth rates,” said Ametek chairman and chief executive officer David Zapico in a statement.
Among Paragon Medical’s products are biocompatible components for surgical implants, including surgical staples, screws, trauma nails, implantable springs, and implantable plastic materials. It also designs surgical instruments, such as guide wires and biopsy solutions; cases and trays; drug delivery systems; and specialty devices.
Additionally, it helps OEMs in the process of bringing these solutions to the market while ensuring that they comply with ISO quality standards.
The deal is subject to customary closing conditions, including applicable regulatory approvals, and is the sixth acquisition the company has announced this year. It was made public on the same day as its fifth acquisition of Amplifier Research Corp., a manufacturer of electromagnetic compatibility (EMC) testing equipment for medical markets, as well as defense, communications, and automotive industries.
Based also in Pennsylvania, Amplifier Research’s annual sales are approximately $60 million, and the company joins AMETEK as part of its Electronic Instruments Group (EIG), which focuses on advanced analytical, monitoring, testing, calibrating, and display instrumentation. The price of this deal was not disclosed.
"Their expertise and capability in amplifier design will greatly enhance our ability to provide a broader suite of solutions for attractive markets including electric vehicle testing and defense communications," said Zapico.
The company has seen strong demand within its EIG sector, with net year-over-year sales rising 5% to $1.62 billion. It also had better-than-expected Q3 earnings and raised its full-year profit forecast to $6.31 to $6.33 per share, from $6.18 to $6.26 per share, reported Reuters
Ametek did not respond to HCB News for comment.