USA – Chemical manufacturer, DuPont has entered into a definitive agreement to acquire Spectrum Plastics Group from global private equity firm AEA Investors for US$1.75 billion.

Spectrum is a provider of advanced manufacturing services to the medical device sector, serving 22 of the top 26 medical technology OEMs, according to the news release.

The company’s strategic focus is on key fast-growing therapeutic areas such as structural heart, electrophysiology, surgical robotics, and cardiovascular.

It offers a full array of capabilities, including extrusion, injection molding, laser processing, and flexible packaging and film.

For DuPont, the acquisition complements its existing offerings for biopharma and pharma processing, medical devices, and packaging, including the Liveo silicone line and Tyvek medical packaging.

DuPont added that the purchase strengthens its position in the fast-growing healthcare markets that are less exposed to up-and-down business cycles than other sectors.

After the deal closes, DuPont said that approximately 10% of its consolidated revenue will come from healthcare.

Spectrum has more than 2,200 employees and has delivered consistently high single-digit growth rates for many years.

DuPont executive chairman and CEO Ed Breen said: “Spectrum is a compelling strategic complement to our existing healthcare portfolio, which already includes businesses with best-in-class innovation, deep customer relationships and 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.”

DuPont notes that Spectrum is fully aligned with its strategic objective of delivering innovative specialized materials and solutions into attractive end markets with long-term secular growth trends.

“We have been focused on Spectrum for a long time and our team is extremely excited for this opportunity,” added Breen.

Commenting on the sale to DuPont, AEA Investors Partner Rahul Goyal said the private equity firm was proud to have supported Spectrum’s transformation over the past five years into a best-in-class company for the development and advanced manufacturing of specialty medical devices and components.

“Through investments in commercial and engineering organizations and the expansion of its manufacturing operations, Spectrum has enhanced its capabilities and offerings in medical end markets and achieved significant growth and increased profitability,” noted Goyal.

The combination [with DuPont] is ideally positioned to continue providing excellent customer service and highly engineered solutions for critical healthcare applications.”

Subject to regulatory approvals and other customary closing conditions, the deal is expected to be completed by the end of the third quarter of this year.

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