As the rubber industry entered into the new year, it's clear that the medical industry will remain one of great activity. That was exemplified by two acquisitions closed late in 2016 where two familiar names in the business made moves intended to broaden offerings and/or geographic footprint.
Q Holding Co., which operates Qure Medical mainly in North America and China, pulled the trigger on a purchase that will more than double its medical sales and overall employment, and also make it a much bigger player in Europe.
The Twinsburg, Ohio-based Q purchased Degania Silicone Ltd., a producer of medical catheters using silicone technology for the European and Middle East markets. While Q Holding—also a big player in automotive and industrial markets through its Quality Synthetic Rubber subsidiary—had strong manufacturing presences in the U.S. and China, it had been looking for ways to build its business in Europe.
Bringing Degania into the fold does that and more. Although Q dealt with large global medical OEMs in Europe, Degania brings with it opportunities with the many regional players Q previously didn't know about because of its limited infrastructure in the continent.
The purchase also allows Q to leapfrog its catheter business. The firm had been working with OEMs to develop a line of catheters, but Degania has been a large player in that market for two decades.
Flexan Medical Holdings was the other rubber company landing a big deal just as 2016 ended. Through its FMI subsidiary, it purchased medical device contract manufacturing firm Medron Inc., based out of Salt Lake City.
Medron brings to Flexan a wide range of capabilities that range from design to product launch and continuing with manufacturing support. Together with FMI, Flexan now will offer a good mix of polymer materials and a business that is split fairly evenly between manufacturing and assembly.
Both Q and Flexan also will benefit by expanding the scope of what they offer their medical device customers. While medical continues to grow, that doesn't mean customers in the sector want to deal with more suppliers.
Going forward, they will favor vendors that can supply full capabilities and systems, making their lives simpler in the process.