Trelleborg A.B. has finalized the $300 million acquisition of the Australian-Chinese Baron Group. The deal, announced in February, became official July 17.
"The acquisition of Baron Group marks a significant milestone in our ambition to build a comprehensive and complete health care and medical offering", Trelleborg President and CEO Peter Nilsson said Feb 6. "The company's complementary culture and similar working methods make Baron Group an excellent addition to Trelleborg's existing offerings. We are convinced that this partnership will generate significant sales and production synergies".
The Melbourne, Australia-based Baron Group will fall within Trelleborg Medical Solutions, which will leverage the company's expertise and production capacity in advanced precision components, particularly through injection molding of silicone and plastics. The acquisition strengthens Trelleborg's technology behind products that target sleep apnea, respiratory care and chronic obstructive pulmonary disease.
The $300 million cash-and-debt-free deal also boosts Trelleborg's footprint in Asia and Australia. With the addition of Baron Group, Trelleborg takes on a headquarters facility and two manufacturing locations in Australia; as well as two additional facilities in China. Baron Group saw sales of around $95 million in 2023, according to Trelleborg.
Trelleborg Medical Solutions President Linda Muroski will help integrate the Baron Group, as well as a planned $21 million, 107,000 sq.ft health care and medical facility in Grecia, Costa Rica, a country that has become a hotbed of medical part production.
"The (medical device) industry itself is expected to have a CAGR of greater than 5 percent," Muroski told Rubber News earlier this year. "We will work with our customers to bring this life-changing technology to patients, delivering full medical devices".
"We see this industry as having steady growth. The industry is innovating and providing products for a better patient outcome. And these things really do make the market attractive to us".