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UTITM Corp acquires Medsource Technologies Inc
Collegeville | Thursday, July 1, 2004, 08:00 Hrs  [IST]

UTITM Corporation has completed the acquisition of Minneapolis-based MedSource Technologies Inc, making the new organization the largest design, engineering and contract manufacturing company serving the medical device market, a company release said.

The acquisition, which was announced in April 2004, has an aggregate transaction value of approximately $230 million, including net debt. Under the agreement, the MedSource common stockholders will receive $7.10 per share in cash.

"The acquisition of MedSource will enable us to redefine order fulfilment and accelerate the delivery of innovation to the market place, helping our customers grow and improve processes across many aspects of their business," said Ron Sparks, president and CEO of UTI. He added, "With our comprehensive services and capabilities, we now have the infrastructure in place to bring the highest quality service and efficiency to our customers."

UTI Corporation, whose lead equity sponsor is KRG Capital Partners, LLC, received new equity financing from DLJ Merchant Banking Partners, part of the family of funds of CSFB Private Equity, the global private equity arm of Credit Suisse First Boston's Alternative Capital Division. UTI will remain privately held.

"Combining UTI and MedSource establishes a dynamic new force of excellence in a market that has long been characterized by smaller, fragmented service providers," said Bruce Rogers, Co-founder and managing director of KRG Capital and chairman of UTI Corporation. "Leveraging the talents and capabilities of both organizations now provides customers one organization that can fulfil everything from raw materials, engineering design and prototyping, to manufacturing, packaging and complete supply chain management," he added.

UTI serves the medical device market with a comprehensive portfolio including: design and engineering services, precision component fabrication, finished device assembly and complete supply chain management.

UTI provides a wide variety of finished goods and components in its target markets: cardiovascular, endoscopy and orthopaedics. Examples include stents, stent tubing, endoscopic devices, endoscopic instruments, orthopaedic replacement joints, plates, screws and fixation devices. In addition UTI offers, engineering services including, rapid prototyping, raw materials consulting and alloy design.

The newly combined entity will soon be announcing its new corporate name and logo. Also underway is a restructuring of its operating divisions to better align with key customers in target markets: cardiovascular, endoscopy and orthopaedics.

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