AMETEK closes $1.9bn MedTech deal to acquire Paragon Medical
In a significant development within the MedTech industry, AMETEK, Inc. (NYSE: AME) announced the completion of its acquisition of Paragon Medical, a prominent provider of engineered medical components, from affiliates of American Securities LLC. The all-cash transaction, valued at approximately $1.9 billion, signifies AMETEK’s robust expansion in the medical technology sector.
This strategic move allows AMETEK to broaden its MedTech presence. Paragon Medical, recognized for its diverse range of applications including orthopedics, minimally invasive surgery, and robotic surgery, will complement AMETEK’s existing portfolio. Paragon’s product line, featuring single-use surgical instruments and implantable components, caters to a blue-chip customer base in the medical device manufacturing industry.
David A. Zapico, AMETEK Chairman and Chief Executive Officer, expressed his enthusiasm for the acquisition. “Paragon’s outstanding capabilities and market leadership align seamlessly with AMETEK’s commitment to delivering high-performance solutions, further broadening our presence in the attractive MedTech industry,” he said.
Strategic Expansion: AMETEK Finalizes Purchase of Paragon Medical
With annual sales of approximately $500 million, Paragon joins AMETEK’s Electromechanical Group (EMG), enhancing its capabilities in thermal management, automation, and engineered solutions. This acquisition marks a pivotal moment for AMETEK, reinforcing its strategic focus on growth and innovation in the MedTech space.
The background of the deal, announced in October 2023, indicates AMETEK’s definitive agreement to acquire Paragon Medical in an all-cash transaction valued at around $1.9 billion. This acquisition is part of AMETEK’s strategic expansion into the MedTech space, aiming to access new and fast-growing market segments.
Leadership from both AMETEK and Paragon Medical have highlighted the transaction’s potential to foster future growth and innovative product development. American Securities LLC, which played a significant role in Paragon’s growth since 2020, has emphasized the company’s resilient performance and innovative contributions to the healthcare industry.
The completion of this acquisition, advised by financial and legal experts, marks a substantial move within the medical technologies and component engineering sectors. It signifies AMETEK’s commitment to growth and expansion in the evolving MedTech industry, poised to shape the future of healthcare solutions.