AMETEK announces $1.9bn all-cash acquisition of Paragon Medical

AMETEK, Inc. (NYSE: AME) announced its definitive agreement to acquire Paragon Medical, a premier provider of engineered medical components, from American Securities LLC, in an all-cash transaction valued at around $1.9 billion.

Expanding AMETEK’s Footprint in MedTech

Paragon Medical, known for its diverse range of applications including orthopedics, minimally invasive surgery, and robotic surgery, aligns well with AMETEK’s strategic expansion into the MedTech space. With annual sales of about $500 million and headquartered in Pierceton, Indiana, Paragon Medical is set to enhance AMETEK’s market presence and provide access to new, fast-growing market segments.

Leadership Perspectives on the Transaction

David A. Zapico, AMETEK Chairman and CEO, expressed enthusiasm for the acquisition, noting Paragon’s role in expanding the company’s MedTech presence and providing new market opportunities. Paragon Medical’s CEO, Wil Boren, echoed the sentiment, focusing on the future growth prospects and innovative product development under AMETEK’s ownership.

American Securities’ Role and Achievements

American Securities LLC, a leading U.S. private equity firm, elaborated on Paragon’s growth since its acquisition in 2020, including investments in additive manufacturing and global expansion. Managing Director Will Manuel and CEO Michael Fisch highlighted Paragon’s resilient performance and innovative contributions to the healthcare industry.

Closing and Advisory Details

Subject to customary closing conditions and regulatory approvals, the transaction signifies a notable shift in the medical component manufacturing landscape. Financial advisors Jefferies LLC and Piper Sandler Companies, along with legal counsel from Weil, Gotshal & Manges LLP and Hunton Andrews Kurth LLP, played pivotal roles in orchestrating this significant deal.

This acquisition by AMETEK not only marks a substantial move within the medical technologies and component engineering sectors but also signifies AMETEK’s commitment to growth and expansion in the evolving MedTech industry. As the sector continues to advance with innovations in surgical and medical technology, such strategic acquisitions become crucial in shaping the future of healthcare solutions.