German plastics engineering company, the Röchling Group, has continued its growth spurt with the acquisition of Waldachtal, Germany-based medical supplier Frank Plastic AG.
The purchase, announced 20 July, follows the recent takeover of US-based Precision Medical Products and is part of Röchling’s strategy to expand its footprint in the medical segment.
Financial details of the deal have not been disclosed.
Founded in 1940, the Black Forest-based Frank has recently centred its focus on supplying to the medical sector and some select industrial segments.
With a turnover of €32.4m in 2017, the company provides technology for medical segments such as cardiology, infusions, angiography (CT/MRI), surgery and ophthalmology.
The company's industrial business supplies extrusion profiles, injection moulding parts as well as valves, flow metres, and fittings. This business will, in the future, work closely with Röchling Industrial.
The acquisition has been made in the wake of recent changes in medical product approval requirements by the EU. The changes, according to Frank’s parent company Ferdinand Piëch Beteiligungs GmbH, have made it increasingly difficult for smaller companies to stay competitive on the highly regulated market.
“Our alliance with the international corporate network of the Röchling Group gives the employees in Waldachtal good prospects for the future,” said Ferdinand Piëch.
Röchling stepped up its medical growth earlier this year with the appointment of Hanns-Peter Knaebel, who holds a doctorate in medicine, as its CEO.
Launched in 2016, the medical division of the Röchling Group, which is also headed by Knaebel, specialises in manufacturing primary packaging for the pharmaceutical and diagnostics industries.
In May, Rochling bought Lancaster County, Pennsylvania-based Precision Medical Products in a bid to strengthen its position as a medical supplier in the US.
The company also announced a €35m investment in capacity expansion at its Neuhaus am Rennweg site in Germany earlier in April.