SFS : significantly expands supplier business in medical device industry

SFS is acquiring Tegra Medical, a US company based in Franklin, Massachusetts. Tegra Medical is a leading development, production and contract manufacturing partner in the medical device market and generates sales of approx. USD 80 million with around 700 employees . This acquisition boosts SFS's penetration and customer base in the rapidly growing medical device market.

Tegra Medical develops and manufactures primarily disposable products made of metal and plastic for global, leading medical device OEMs. These products are used in orthopaedics, interventional therapies and minimally-invasive surgery. The product range includes surgical fasteners, stylets and cannulas, implants and instruments.

Like SFS, Tegra Medical is trusted partner that customers turn to in the early stages of the new product development process. It embraces close and lasting partnerships with customers; and it sets high standards for precision manufacturing of complex components. Having manufacturing facilities in Franklin, Dartmouth and Hernando (USA) and in La Aurora (Costa Rica), Tegra Medical develops and manufactures its products in the major global clusters of the medical device industry, which is also where its key customers are. All four facilities have been accredited by the relevant authorities, have received ISO 13485 certification and are staffed by highly qualified employees and specialists.

Tegra Medical will be integrated into the Engineered Components segment as an independent division. Tegra Medical's current executives will continue to manage the company. Upon completion of the transaction, Tegra Medical's current CEO J. Mark King will take a seat on the Group Executive Board of SFS Group and lead the 'Medical' division.

Growth in an attractive market segment

The medical device market is expanding at a fast rate worldwide. This growth is being fueled by demographic developments, high demand for health care services, improved access to health care systems and by the industry's own high rate of innovation. As cost pressure in the medical device industry mounts, companies such as SFS or Tegra Medical can offer OEMs significant value-added benefits thanks to their vast technology and manufacturing expertise.

Tegra Medical is a trusted development partner for global OEM leaders. It employs around 700 people and generated sales of approx. USD 80 million in its 2015 fiscal year. SFS aims to further strengthen its market position in the medical industry.

Both parties agreed not to disclose any details of the acquisition price. The transaction is subject to customary closing conditions and is expected to be concluded no later than the end of 2016.