BERWYN, PA — AMETEK, Inc. (NYSE: AME), a manufacturer of electronic instruments and electromechanical devices, recently announced its intention to acquire Paragon Medical, a premier provider of highly engineered medical components and instruments. The all-cash transaction is valued at approximately $1.9 billion and will be funded through affiliates of American Securities LLC.
Paragon Medical is a well-regarded figure in the medical technology industry, serving a diverse range of specialty applications. These include orthopedics, minimally invasive surgery, robotic surgery, and drug delivery, among others. With an impressive product portfolio of single-use and consumable surgical instruments along with implantable components, Paragon has established a robust blue-chip customer base comprising leading medical device manufacturers.
David A. Zapico, AMETEK Chairman and Chief Executive Officer, expressed enthusiasm for the acquisition, stating, “We are excited for the opportunity to acquire such an outstanding business.” He highlighted that the acquisition would significantly expand AMETEK’s presence in the MedTech space and provide access to attractive new market segments with strong growth rates. “Paragon’s products and capabilities nicely complement AMETEK’s existing medical businesses enabling geographic and customer expansion opportunities,” Zapico added.
With annual sales of approximately $500 million, Paragon Medical represents a significant addition to AMETEK’s portfolio. The company is headquartered in Pierceton, Indiana, providing a strategic geographic advantage for AMETEK’s expansion plans.
The acquisition signifies a strategic move by AMETEK to diversify and strengthen its position in the rapidly growing MedTech industry. This deal not only broadens AMETEK’s product portfolio but also opens up new avenues for growth in the medical technology sector. It aligns with AMETEK’s growth strategy of pursuing acquisitions that provide strong synergies and opportunities for growth in attractive markets.
This transaction is expected to offer immense value to AMETEK’s shareholders as it taps into the lucrative medical technology market, which has been experiencing rapid growth due to technological advancements and increasing demand for medical devices and instruments. Furthermore, it enhances AMETEK’s capability to serve a wider range of customers with an extended product portfolio.
The transaction is subject to customary closing conditions, including applicable regulatory approvals. Once completed, this acquisition will mark a significant milestone for AMETEK, further solidifying its position as a leading player in the global MedTech industry.
Investors will undoubtedly be watching closely as AMETEK continues to make strategic moves to expand its footprint and deliver enhanced value. With this acquisition, AMETEK demonstrates its commitment to investing in high-performing businesses that complement its existing operations and provide avenues for sustainable long-term growth.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.