Montagu to buy Johnson Matthey Medical Device Components for $700M
20 Mar 2024
Acquisition
Private equity firm Montagu announced that it agreed to acquire the Johnson Matthey Medical Device Components (MDC) business.
Johnson Matthey said Montagu has agreed to pay $700 million cash for the business. The deal is subject to regulatory approval but expected to close sometime around the third quarter.
It’s the latest deal in the nitinol market as medical device developers find new applications for the nickel-titanium alloy, ranging from orthopedics to brain and heart implants and interventional devices.
Earlier this year, Confluent Medical Technologies invested at least $50 million in ATI’s nitinol melt and materials conversion infrastructure. Last year, Resonetics bought the SAES Getters medical nitinol business for $900 million.
Johnson Matthey’s carved-out MDC business develops and manufactures miniature components for minimally invasive medical devices used in high-growth clinical specialties. It focuses on complex and high-precision components made from platinum group metals and nitinol.
The business has decades of expertise in the metallurgy, micro-machining and coating of these specialty alloys. It has manufacturing sites in San Diego; Mexicali, Mexico; and Tullamarine, Australia.
“As a JM business, MDC has delivered technological differentiation and good growth to the critical health sector,” Johnson Matthey CEO Liam Condon said in a news release. “We welcome Montagu’s plans to continue the investment and growth plans at MDC.”
Once the transaction closes, Montagu plans to have MDC operate as a standalone company led by its existing management team.
“We are delighted to be partnering with Montagu in the next phase of MDC’s development. They bring a significant amount of expertise in healthcare and in particular IP-led medical devices, and they share our ambitions for the business over the coming years, both organically and through M&A,” MDC CEO Don Freeman said.
The MDC carve-out “aligns strongly with Montagu’s approach,” Montagu Partner Adrien Sassi said.
“MDC has rare and hard to replicate capabilities that enable it to handle the most complex and demanding precision-engineered components at scale,” Sassi said. “With support from Johnson Matthey, Don and his team have positioned the business to capitalize on the fast growth of its underlying markets and blue-chip OEM customers. We look forward to supporting their ambitious expansion plans.”
Medical nitinol manufacturing: How this nickel-titanium alloy is made for medical devices
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