Vention Medical Inc. has undergone some major changes this year, and it’s still the first quarter. Vention, a portfolio company of KRG Capital Partners, designs and manufactures complex medical devices and components used in interventional and minimally invasive surgical products. As of February 20th, its two core business units were sold to separate companies.
Vention Medical consisted of the Advanced Technologies (Vention AT) business and a separate Device Manufacturing Services (Vention DMS) business, a contract manufacturing operation.
Nordson Corporation (NASDAQ: NDSN) acquired Vention AT for $705 million in an all-cash transaction on February 20, 2017. This business develops and manufactures minimally invasive interventional delivery devices, catheters and advanced components. The price produces an EBITDA multiple of 14.7x. The deal adds significant scale and enhances the strategic capabilities of the existing Nordson medical platform.
Nordson passed on buying the entire company, saying in a press statement that the contract manufacturing business was not a core business for the company.
On the same day, MedPlast Inc., a portfolio company of JLL Partners and Water Street Healthcare Partners, acquired Vention DMS for an undisclosed price. This acquisition will further expand MedPlast’s assembly and packaging capabilities, enabling it to offer customers a comprehensive suite of services producing a wide range of medical products. It also will extend MedPlast’s global footprint to 22 manufacturing facilities located in key markets throughout North and Central America, Asia and Europe.
These acquisitions followed Vention Medical’s January 24th acquisition of the Israeli medical device maker, Lithotech Medical Ltd., for an undisclosed price. Lithotech produces, develops and sells invasive medical devices based on nitinol alloy and applications of nano-pulse technology for lithotripsy and other medical usage.
The deal expanded Vention’s portfolio of advanced components and technologies for the development and manufacturing of medical devices for the interventional market. And obviously made it an easier exit for KRG Capital.
