3i-backed Q Holding to acquire Degania Silicone
Q Holding announced today that it has entered into an agreement to purchase Degania Silicone Ltd. (“Degania”).
Q Holding announced today that it has entered into an agreement to purchase Degania Silicone Ltd. (“Degania”), a leading international manufacturer of medical catheters. Q Holding is acquiring Degania from Viola Private Equity, Kibbutz Degania Bet and Israel Growth Investors.
Degania represents a transformative acquisition for Q Holding, creating a market-leading medical device and component manufacturer offering complete flexible technology solutions for healthcare applications. With over $85m in revenue the acquisition more than doubles Q Holding's medical sales. Degania produces critical end products that are used on a daily basis in healthcare settings in applications such as cardiology, general surgery and drug delivery. Degania employs c. 1,700 globally and has R&D and manufacturing facilities in Israel, India, France and Slovakia.
Degania goes to market through three brands: Degania, a premier developer and manufacturer of medical catheters for global medical device OEMs; Arthesys, a cardiovascular and peripheral vascular catheter designer and manufacturer specializing in catheters for stent delivery; and Biometrix, a manufacturer and provider of catheter-related kits for hospitals and health care distributors. Across these segments Degania partners with a wide base of global medical device OEM customers that are market leaders in their respective product categories.
Together, Q Holding and Degania will offer an unprecedented suite of development and manufacturing services, material technologies, analytical tools and industry expertise. The combined business will also offer complete product lifecycle management with assembly, packaging and 510K management for customers’ outsourcing needs with a network of operations that can bring the supply chain close to the consumption point.
In November 2014, 3i invested in Q Holding, an Ohio-based manufacturer of highly-engineered, precision-moulded elastomeric components used in a broad range of healthcare and electrical management applications. With over 1,300 employees, the company has design and manufacturing locations in the US, China, the UK and Mexico, and sells products in over 50 countries. Since 3i’s investment, Q has acquired Silicone Altimex, a leading manufacturer of elastomeric tubing for the medical and biopharmaceutical markets in the UK and continental Europe. With 3i’s support, Q has continued its international expansion into Europe, Asia and Mexico, investing in manufacturing facilities and additional commercial resources in each of those regions.
Randy Ross, Chief Executive of Q Holding, commented: “We are delighted to have reached this agreement to purchase Degania. The businesses are highly complementary and the acquisition represents a critical milestone in diversifying and internationalizing the business. It will significantly enhance the value we can deliver to our global customer base thanks to Degania’s strong R&D capabilities in Israel and France and state‐of‐the‐art facilities in Israel, France, India and Slovakia.”
Rami Zajicek, CEO of Degania, added “We are proud of the company that our employees and investors have developed and we see joining forces with Q Holding as the natural next step for Degania to build upon this growth. The alignment of Degania, Q Holding and Qure Medical will benefit customers by providing a greater global network of development and manufacturing resources.”
Richard Relyea, Managing Director 3i North America, commented: “3i is pleased to support Q Holding in this transformative acquisition of Degania. This combination creates a leader in precision elastomeric medical device components and assemblies and advances our goal of building the premier global supplier of engineered elastomeric products for the high growth healthcare and electrical management markets.”
For further information, contact:
3i Group plc
Tel: +44 20 7975 3032
Tel: +44 20 7975 3027
Notes to editors:
About 3i Group
3i is an investment company with three complementary businesses, Private Equity, Infrastructure and Debt Management, specialising in core investment markets in Northern Europe and North America. For further information, please visit: www.3i.com
About Q Holding
Q Holding Company is a leading global manufacturer of highly-engineered precision-molded elastomeric components used in a broad range of medical, pharmaceutical and electrical management applications. Q Holding is vertically integrated with in-house Quadra Tooling & Automation, enabling rapid turnaround and the largest selection of proprietary tooling capabilities in the industry. With over 1,300 employees, the company has an international footprint (five manufacturing locations in the U.S., two manufacturing facilities in China and one in the UK and Mexico), selling products in more than 50 countries. Q Holding goes to market in the life sciences as Qure Medical and in electrical management as Quality Synthetic Rubber (QSR).
Degania is a leading manufacturer of medical catheters serving a global base of medical device OEM customers. Degania specializes in a wide range of intravascular catheters and medical devices in the cardiovascular and vascular, thoracic and general surgery, urology, critical care and operating rooms and enteral feeding markets. Founded in 1984, the Company is headquartered in Israel and has c. 1,700 employees worldwide.