Medical components maker Zeus explores $4 billion sale -sources
25/09/2023 18:53
By David Carnevali
NEW YORK, Sept 25 (Reuters) - Zeus Company Inc, a
family-owned manufacturer of components used primarily in
medical equipment and devices, is exploring options including a
sale that could value the company at $4 billion or more,
including debt, people familiar with the matter said.
The Orangeburg, South Carolina-based company is in the early
stages of a sale process and is working with investment bank
Goldman Sachs Group GS.N to establish whether a deal would be
financially attractive, the sources said.
Zeus, which uses biomaterials to make implantable parts and
other products such as catheters components, is controlled by
the family of its founder Frank Tourville, who passed away in
2021.
The auction for Zeus is expected to attract interest from
strategic buyers and private equity firms, the sources said.
The owners of Zeus could decide not to go through with a
transaction, the sources added, requesting anonymity because the
matter is confidential.
Zeus did not immediately respond to requests for comment and
Goldman Sachs declined to comment.
Zeus' 12-month earnings before interest, taxes,
depreciation and amortization (EBITDA) is approaching $200
million, the sources said.
Founded in 1966 in New Jersey by Tourville, Zeus started out
as a maker of tubing that is used in medical applications. The
company moved its headquarters to South Carolina in the 1980s
and branched out to new sectors and international markets in the
following decades.
Zeus now has a workforce of over 1500 employees, spread
across nine facilities operating in the U.S., Europe and Asia,
according to its website.
The company uses extrusion, a process in which materials
such as plastics are molded into different shapes, to produce
components that are sold to clients in industries such as
medical devices, aerospace and automotive. Zeus now makes parts
that are used in grills, aircraft, 3D printing and surgical
suites, according to its website.
A potential deal for Zeus would follow a few other
transactions this year involving providers of research and
manufacturing services to the life sciences industry.
In March, Sartorius SATG.DE acquired French lab technology
company Polyplus for 2.4 billion euros ($2.54 billion) from
private investors.
In May, an investor consortium comprising Elliott Investment
Management, Patient Square Capital, and Veritas Capital acquired
clinical research provider Syneos Health for more than $7
billion, including debt.
($1 = 0.9447 euros)
(Reporting by David Carnevali in New York; Editing by Josie
Kao)
((David.Carnevali@thomsonreuters.com;))