Dive Brief:
- DuPont de Nemours closed on its $313 million acquisition of medical device contract manufacturer Donatelle Plastics on July 28, according to a securities filing.
- Donatelle specializes in the design, development and manufacturing of medical components and devices for therapeutic areas such as cardiac, diagnostics and orthopedic extremities, according to a July 29 press release.
- The contract manufacturer will be integrated into the chemical giant’s materials science business, dubbed New DuPont, one of the three independent public companies DuPont announced in May it will split up over the next two years.
Dive Insight:
Donatelle, as well as Spectrum Plastics Group, which DuPont acquired last year for $1.75 billion, will deepen and complement the chemical maker’s expertise in the medical device market, CEO Lori Koch said in a July 31 earnings call.
“Together, these offerings are expected to enhance our position as a partner of choice for customers in the high-growth medical device field,” Koch said.
Unlike Spectrum, however, Donatelle has exposure to some of the large medical device OEMs, Koch added.
Donatelle was established in 1967 and is based in New Brighton, Minnesota, where it operates one factory, according to a June 25 press release. The company has over 400 employees and operates near a medtech hub in the Minneapolis–Saint Paul metropolitan area. Dubbed Medical Alley, it’s home to many prominent OEMs, including Medtronic, Abbott and 3M’s healthcare spinoff, Solventum.
The location will give DuPont cross-selling opportunities in related products, as Donatelle also has machining and tooling offerings to add to the portfolio. The medical device maker specializes in technologies and capabilities including injection molding, liquid silicone rubber processing and device building.
The Donatelle acquisition is expected to generate an estimated $75 million in new revenue for DuPont this year, SVP and CFO Antonella Franzen said during the call.
DuPont has made progress on its three-way company split into separate materials science, electronics and water filtration entities. The chemical maker is prioritizing completing executive leadership and board appointments for the electronics and water companies, Executive Chairman Ed Breen said in the call. Announcements are expected next year.
