Qure expands reach in Europe with acquisition

TWINSBURG, Ohio—Q Holding Co.'s Qure Medical business has acquired Nottingham, England-based Silicone Altimex Ltd. for an undisclosed amount.

Qure Medical provides integrated elastomeric solutions to medical device manufacturers. Qure said Altimex is one of Europe's leading independent manufacturers of clean room-produced silicone tubing components and assemblies for the pharmaceutical industry.

“We've always looked at acquisitions from a very strategic standpoint, as far as we're not trying to buy things just to get bigger,” said Randy Ross, Qure president and CEO.

Qure was looking to grow its European presence and debated whether to acquire an existing business or go with a greenfield approach. Silicone Altimex had many attributes the firm was seeking, so it approached the European company about selling, he said.

The acquisition will provide Qure with a manufacturing presence in Europe. Silicone Altimex's manufacturing facility is in Nottingham, but the firm has a sales presence throughout Europe.

Silicone Altimex is well established in the technology area of the business, Ross said, similar to how Qure Medical is in the U.S. While the two companies do have a few customers that overlap, bringing Silicone Altimex into the Qure fold will “bring a wide portfolio of new customers into the network,” he added.

Lastly, Ross pointed out that by acquiring such a high-caliber manufacturing location, Qure is adding a tremendously powerful team. Silicone Altimex has been around since 1976 and has an “excellent manufacturing and technology team,” which takes a long time to establish.

“We certainly have no intention of removing anybody from the company. We actually plan to invest more,” he said.

Silicone Altimex has grown organically with strong revenue. Qure plans to infuse some technologies that will help accelerate its growth.

“We are thrilled to join Qure Medical, and I am confident that the next stage in our development will be a very exciting one,” Chris Barker, managing director of Silicone Altimex, said in a news release.

Q Holdings aims to grow its other side of the business—its Quality Synthetic Rubber unit, which serves the aerospace, automotive and industrial markets—in Europe as well.

The firm has spent the past five years building its Asian platform in Southeast China, where the company currently has three factories that can offer electrical insulation products, electrical sealing products and the full array of Qure Medical pharmaceutical products. The company is comfortable with how it has expanded in that market, Ross said, including the right team and presence there.

“In the near term, our focus will remain very strong in the European market,” he said. “When we look at the global markets, we really have been under-represented in Europe.”

Although supply chain inefficiency and the ability to offer product locally were some issues for this, Ross said Qure has a strong business-to-business selling relationship with customers. This was lacking in Europe.

People want to know how things are made and to be able to see and touch the technology. Previously, when Qure would work in the European market, it was a challenge for customers who wanted to see how a product was made. It was a long plane ride to Asia or America, Ross said, but this acquisition will alleviate some of those troubles.

Q Holding was acquired by Europe-based 3i Group P.L.C. in November 2014. The private equity firm has a strong operating base in Europe and owns Q Holding's three units—Qure Medical, QSR and Quadra Tooling and Automation—in what was reported as a $160 million transaction.

Q Holding primarily serves the automotive, medical and pharmaceutical markets with goods made by Qure Medical and QSR. The firm operates six manufacturing facilities in the U.S. and China, selling products in more than 50 countries, and it has a sales and engineering office in Germany, employing about 1,100 throughout its operations.