Arterex, a medical device contract manufacturer, has signed an agreement to acquire NextPhase Medical Devices.
NextPhase is a class II and III medical device contract manufacturer of complex electromechanical devices, active implantable devices and single use disposables in North America. It provides design and engineering, manufacturing and assembly, quality and regulatory, and supply chain and logistics management services enabling its customers to bring low-to-medium volume complex medical devices to market.
This transaction follows Investindustrial’s original investment in Arterex – created through the combination of four complementary companies across the US and Europe - to build a global multi-capability medical device contract manufacturer.
Arterex’s acquisition of NextPhase doubles the size of the Group and creates a top-tier global medical device contract manufacturer with 70% of its revenues generated in the US. The combined Group comprises 7 well-capitalised end-to-end manufacturing facilities across North America, Europe and North Africa, a broad range of manufacturing capabilities and strong end-market exposure across international markets.
Arterex will be able to leverage its local capabilities across countries to best service its clients, which include mostly global medical device original equipment manufacturers.
Charles Stroupe, executive chairman of Arterex, commented: "NextPhase is an outstanding addition to the Arterex portfolio of business. NextPhase is well positioned for growth, and strategically, and adds measurably to the Arterex multi-capability business strategy to better serve and grow our customer base. This acquisition is transformational and provides highly complementary manufacturing and assembly capabilities to the Arterex platform. With the resulting capability diversification, this transaction will allow us to create significant synergies and enable us to better service our combined core blue-chip medical OEM customer base and regional specialty customers. Our combined platform will also have substantial production capabilities with a significantly diverse customer base across North America and Europe, well-positioned to continue our global growth strategy.”