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Montagu’s acquisition of Johnson Matthey’s MDC business to spark growth in key medical device markets, says GlobalData

Press releases may be edited for formatting or style | March 26, 2024 Business Affairs Parts And Service
Montagu, a private equity firm, has recently agreed to acquire the Medical Device Components (MDC) business of Johnson Matthey, for a deal valued at $700 million. With the acquisition, Montagu is set to grow in several key medical device markets, which are forecast to grow in the next decade, according to GlobalData, a leading data and analytics company.

MDC specializes in the development and manufacturing of small components for medical devices. These components, crafted from platinum group metals and nitinol, exemplify precision engineering. With decades of expertise in metallurgy, machining, and working with special alloys, MDC has solidified its position as a major player in the field.

Thomas Fleming, Medical Analyst at GlobalData, comments: “MDC has applications in electrophysiology, cardiac rhythm management, vascular intervention, structural heart, neurostimulation, and cochlear markets, among others. According to GlobalData’s latest market models, these markets and related ones are predicted to show positive growth over the next decade.”

GlobalData predicts the electrophysiology device market, the cardiac rhythm management device, the neuromodulation device market, the structural heart occlusion device market, the cardiovascular surgery device market, and the cochlear device market to register 1.6-9.3% compound annual growth rates (CAGR) over the next decade, globally. With expected market growth in the future, MDC has the opportunity to expand and innovate.

Fleming continues: “One of the key strengths of MDC lies in its global presence. With manufacturing sites strategically located in the US, Mexico, and Australia, the company is poised to cater to the needs of medical device manufacturers worldwide. This geographical diversity ensures resilience and flexibility in the supply chain, crucial for meeting the demands of an ever-evolving healthcare landscape.”

Following the acquisition, MDC is slated to continue its operations as a stand-alone company, with its existing management team maintaining the lead. This continuity ensures a smooth transition and underscores Montagu's confidence in the leadership and operational prowess of MDC.

The acquisition of MDC by Montagu is the company’s second recent carve-out, following the acquisition of Cook Medical’s biotech business in January. With a track record boasting over 30 carve-outs since 2002, Montagu has demonstrated its adeptness at identifying and nurturing successful businesses.

Fleming concludes: “The acquisition of MDC not only expands Montagu's footprint in the healthcare industry but also underscores its commitment to investing in innovative enterprises poised for growth. As medical technology continues to advance, the acquisition of MDC by Montagu is expected to deliver cutting-edge solutions that enhance patient care globally.”

About GlobalData
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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