AMETEK, Inc. (NYSE: AME), a global industrial technology solutions firm, has announced its plans to acquire Paragon Medical from affiliates of American Securities LLC for an estimated $1.9 billion in cash, significantly expanding its medical-technology portfolio. This announcement furthers AMETEK's strategic growth model.
Paragon Medical is a Pierceton, Indiana-based company specializing in medical components and instruments for various surgical procedures such as orthopedics, minimally invasive surgery, robotic surgery, and drug delivery systems. The company's offerings include single-use surgical instruments and implantable components sold to top medical device manufacturers.
The acquisition is expected to considerably boost AMETEK's presence in the MedTech industry while opening up geographic and customer expansion opportunities as well as access to high-growth market segments. "This deal aligns with the AMETEK Growth Model, focusing on operational excellence, new product development, global and market expansion, strategic acquisitions, cash generation, and capital deployment," said David A. Zapico, AMETEK's Chairman and CEO.
Paragon Medical's annual sales reach approximately $500 million. This addition will complement AMETEK's existing medical businesses that reported $4.87 billion in sales during the first nine months of 2023.
In addition to this acquisition, Berwyn, Pa.-based AMETEK also purchased Amplifier Research, a company specializing in amplifiers and electromagnetic compatibility testing equipment with an annual turnover of $60 million.
The transaction with Paragon Medical is subject to customary closing conditions and regulatory approvals.
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