DuPont buying medical device maker Spectrum Plastics for $1.75 billion

Chemical giant DuPont has acquired Spectrum Plastics Group, a provider of advanced manufacturing services to the medical device sector, from global private equity firm AEA Investors for US$1.75 billion.

In a news release, officials with Wilmington, Del.-based DuPont said that Spectrum, which is headquartered in Alpharetta, Ga., serves 22 of the top 26 medical technology OEMs, with a strategic focus 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, and specializes in medical tubing.

The transaction is expected to close by the end of the third quarter of 2023, subject to regulatory approvals and other customary closing conditions.

DuPont also said the deal 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 per cent of its consolidated revenue will come from healthcare.

Spectrum – which was formed in 2017 through the merger of Pexco LLC and PPC Industries – has more than 2,200 employees and has delivered consistent high single-digit growth rates for many years, DuPont said.

DuPont chairman and CEO Ed Breen said that his firm “has been focused on Spectrum for a long time.” He added that Spectrum “is a compelling strategic complement to our existing health care portfolio…With this combination, we’ll be able to offer customers additional innovation and manufacturing capabilities with a broader and more integrated solution set.”