The Hindu Business Line : Essel Propack acquires US firm MED

Mumbai, Sept. 5 Essel Propack Ltd, with interests in specialised packaging, laminated tubes and medical devices businesses, on Friday announced the acquisition of Minneapolis-based Medical Engineering and Design Inc (MED), a supplier of specialised disposable medical devices.

Mr R. Chandrasekhar, President of Essel Propack (EPL), told Business Line that the acquisition of 74 per cent equity in MED was for an enterprise value of $10 million. The all-cash deal will be funded through a mix of debt and internal acquisition.

“The acquisition will give us a new product line and access to new markets. This is one more step towards consolidation of growth by expanding product and customer portfolio in the medical device business,” he said.

Looking ahead

In April this year, EPL had acquired another US-based company in the medical devices business, CDT. “Six months down the line, we expect to roll these two (US) entities into one for better synergies,” Mr Chandrasekhar said.

MED is a supplier of custom products to the global medical device industry, including proven solutions to catheter, extrusion and braid reinforced tubing needs of customers.

“We believe that the acquisition brings us closer to our goal of unlocking the value in our medical device business,” Mr Ashok Goel, Vice Chairman and Managing Director of EPL, said.

The acquisition will give EPL a new product line as it is at present making catheters with cardio-based deliveries, while MED specialises in non-cardio catheters.

Promoted by the Essel Group, EPL has three lines of businesses — plastic and laminated tubes, medical device and specialty packaging. EPL has facilities in 14 countries.

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