MCM Capital Partners is actively seeking investments in medical component manufacturers acting as Tier 1 and/or Tier 2 suppliers to OEM’s.
The following are reasons why we are interested investing in the Medical end markets, our experience, and characteristics of attractive companies.
Favorable Medical Industry Trends & Characteristics
- Aging population and increased availability of healthcare promotes continued growth
- Increased incidence of lifestyle and chronic diseases support growth
- Significant barriers to entry exist due to high industry regulations
- Increasing healthcare expenditures in developing markets maintain growth
- Minimally invasive surgical tools and new product launches further growth
- Companies with existing cleanrooms and ISO 13485 certifications have competitive advantages
- Contract manufacturers providing a unique and critical product enjoy healthy profit margins
- Fragmented marketplace of smaller companies provides an opportunity for growth
MCM’s Medical Experience and Value-Add
- MicroGroup, www.microgroup.com, divested, is a value added manufacturer and distributor of small diameter stainless steel and alloy tubing, and providing precision metal fabrications to OEM’s in the medical and life science industries. MicroGroup sold speed to its customers by turning a blueprint to product in 2 days.
- RMB Products, www.rmbproducts.com, acquired in 2010, maintains an ISO 7 Class (10,000) Cleanroom and is currently working with BioPharma companies developing new products.
- Performance Plastics, www.performanceplastics.com, acquired in 2015, injection molds highly engineered thermoplastic products for the Life Science market.
- STACI, divested, provides contract electronic manufacturing services for various industries, including medical.
- INSERVCO, divested, supplies complex electronic assemblies to the medical imaging industry.
- OneSource, divested, is a provider of repair services for biomedical equipment including medical lasers, endoscopes, anesthesia and respiratory equipment and environmental gas testing equipment.
- Mr. David Camiener, MCM Board Advisor, formerly President of AMRESCO, a supplier of regulated materials and high purity biochemicals to the Pharmaceutical and Life Science industries. The company’s revenue grew over 18x during his 19 year tenure. He sold it to VWR International, LLC, a global distribution company. Mr. Camiener serves on select company boards and helps review investment opportunities.
- Mr. A. Malachi Mixon, MCM Board Advisor, Chairman and retired CEO of Invacare (NYSE:IVC), a $2B distributor of medical equipment, one of the original founding investors in MCM. He also served as the Chairman of the Board of the Cleveland Clinic Foundation.
- Mr. Art Anton, MCM Board Advisor, President and Chief Executive Officer of Swagelok Company, a major developer and manufacturer of fluid system component technology serving pharmaceutical markets among many others.
- MCM Professionals have attended Medical tradeshows (MD&M West, East, and Minneapolis, BIOMEDevice, INTERPHEX) across the United States since 2010 to further our industry knowledge.
Seeking Medical Component Manufacturers with the following Characteristics
- Sales $10-$75 million and/or EBITDA $2-$8 million
- Gross Margins: Manufacturers > 35% or Distributors > 25%
- Contract manufacturing operations acting as Tier I or Tier II suppliers to OEM’s
- Cleanroom and/or ISO 13485 certification are attractive
- Headquartered in the United States
- Segments preferred, but not limited to:
- Chronic related diseases
- Preventative Care
- Products or characteristics desired, but not limited to:
- Component manufacturers
- High precision / tight tolerance
- Micro / miniature
- Minimally invasive
- Portable devices
- Products serving elderly population
- Single use / disposable / consumable
- Surgery related
Business Owner Recommendation
“There are a lot of private equity firms you could look at—but once you meet the guys at MCM, you know this is who you want to work with.”
Dennis Docherty, President & CEO, Inservco
“I never thought of MCM as an investor, they were my partner. I never had to concern myself with investor relations. Of course money is important, but the vast majority of the time we spent talking about ways to grow our business and they were always supportive of our initiatives.”
Bill Hulbig, CEO, MicroGroup
“MCM tends to hold their companies longer than most PE firms, and they have been extremely supportive of my efforts to build a top tier team – commercial, engineering and operations. They have invested heavily in new equipment and facility improvements that are critical to taking RMB to the next level.”
Craig Jack, CEO, RMB Products