Private equity firm Golden Gate Capital is in advanced talks to acquire Phillips-Medisize Corp, a provider of medical device manufacturing services, from buyout firm Kohlberg & Co LLC for close to $800 million, according to people familiar with the matter.
Golden Gate has prevailed over other private equity bidders in an auction for Phillips-Medisize and is trying to finalize the terms of a purchase agreement, the people said.
The people asked not to be identified because the negotiations are confidential. Representatives for Kohlberg and Phillips-Medisize did not immediately respond to requests for comment, while Golden Gate declined to comment.
Founded in 1964 as Phillips Plastics Corp, Phillips-Medisize produces parts for the medical and drug delivery industries, including surgical instruments, infusion pumps, spinal surgery kits and molded parts for syringes used for insulin injections.
Kohlberg acquired Phillips Plastics in 2010, and in 2011 Phillips Plastics in turn acquired Medisize Corp from Swedish private equity firm Ratos AB to create Hudson, Wisconsin-based Phillips-Medisize.
Phillips-Medisize has annual sales of over $500 million, according to its website. It employs over 3,100 people in 19 locations throughout the United States, Europe, Mexico and China.
(Reporting by Greg Roumeliotis and Soyoung Kim in New York. Editing by Andre Grenon)