June 2018 (Boston, MA) – Covington Associates, a leading middle market investment bank announced its role as advisor to Precision Medical Products, Inc., a medical device manufacturer based in Denver, PA, on the sale of its business to Röchling Group, a large German manufacturing group.
“This acquisition will allow us to significantly strengthen the position of Röchling as a provider of sophisticated medical technology products and implement our growth strategy in the USA. Furthermore, we expect the acquisition to provide synergies with our other locations that are dealing with the issue of medical technology,” explained Professor Hanns-Peter Knaebel, CEO of the Röchling Group and responsible for the Medical division, giving the background to the acquisition. He pointed out that Precision Medical Products had acquired an excellent reputation in terms of quality and innovation. “This is an exact fit with the Röchling philosophy and a solid foundation for future success.”
PMP has more than 50 years of experience in the manufacture of medical equipment and nearly 100 years of experience in the development and manufacture of needles and other precision-manufactured metal products. The range of services includes engineering services, metalworking, injection molding, equipment assembly, packaging, and sterilization. The ability to manufacture high-quality precision components with extremely narrow tolerances and complete demanding projects to a high degree of quality has generated significant growth in the past.
“The company fits perfectly with our strategy of strengthening our medical technology business in the USA. It is a medium-sized, owner-managed company that will integrate well into the Röchling Group and be an excellent addition to the Group’s business. That was an extremely important factor in our decision,” explained Knaebel. PMP is managed by an experienced management team that will oversee the integration of the company into the Röchling Group during a transition phase, he confirmed. Douglas N. Yocom, President & CEO of PMP, is convinced that absorption into the Röchling Group as an international leader has opened up extraordinary future prospects for his company and its employees. He is confident that it will allow strong growth and secure jobs. The company, which has 120 employees, was singled out three years in a row as one of the “Best Places to Work in Pennsylvania”.
This transaction marks the third medical contract manufacturing transaction that Covington Associates has completed this year.
ABOUT COVINGTON ASSOCIATES LLC
Covington Associates is an investment banking firm offering advisory services in the areas of mergers and acquisitions (“M&A”), capital raising, strategic advisory, fairness opinions, and valuations to middle-market companies across the Healthcare, Business Services, Consumer & Industrial, and Technology verticals. Founded in 1991, with offices in Boston, the vision for Covington has been to provide clients with the highest caliber of senior-level attention and to remain an advice driven and results focused organization. Since its inception, Covington Associates has completed more than 200 transactions globally for both private and publicly traded companies totaling over $15 billion. To learn more about Covington Associates visit http://www.covingtonassociates.com/overview.
ABOUT PRECISION MEDICAL PRODUCTS, INC.
Precision Medical Products, Inc. has more than 50 years of experience manufacturing medical devices and almost 100 years of experience engineering and producing needles and other precision-crafted metal products. Precision Medical Products works with metal and plastic components and can offer medical device assembly, medical device component manufacturing, and contract packaging in ISO-certified Class 7 (FS209E Class 10,000) and Class 8 (FS209E Class 100,000) clean room areas. For more information visit https://www.precmed.com.
ABOUT RÖCHLING GROUP
The Röchling Group, headquartered in Mannheim, Germany includes a large number of locations in countries all over the world. With a workforce of several thousand employees, Röchling Group manufactures their products in close proximity to their customers and markets. Röchling’s Medical Division offers customers a wide range of standard and tailored plastic products in the fields of pharmaceuticals, diagnostics, surgery and life sciences. These high-quality products are used in innovative drug delivery systems, primary packaging systems, surgical instruments and disposable diagnostic items. For more information visit https://www.roechling.com.