CoorsTek Acquisition Positions UnitedCoatings as a Top Supplier

Posted in Business Critical | August 16, 2019 | Comments (0): Article 
Tags: contract manufacturingadditive manufacturing
By: Heather Tunstall

BONEZONE – 2019, Aug 16 | The recent purchase of CoorsTek Medical is a major step in UnitedCoatings Group’s shift from a surface technology company to a fully integrated contract manufacturer. Of note, the acquisition positions UnitedCoatings as one of the largest orthopedic contract manufacturers and adds a major 3D printing player to the list of top suppliers ranked by revenue.

We estimate that the combined annual orthopedic-related revenue of UnitedCoatings and CoorsTek Medical lies in the range of $140 million to $150 million, split nearly evenly between the two companies. The estimate places the company at #8 on our list of top 10 orthopedic contract manufacturers ranked by revenue, along with Tecomet, Orchid Orthopedic Solutions, Viant, Cretex, CeramTec, Rosler, Avalign Technologies, NN Life Sciences and Autocam Medical.

Gennaro D’Andrea, Worldwide General Manager of the Medical Division of UnitedCoatings Group, described the move as a strategic growth decision.

“This acquisition is the next step for the UnitedCoatings Group to become one of the leaders in integrated supply chain solutions to OEMs in the medical device industry, allowing us to capitalize on the growth trends and further extend our market share,” he said. “By acquiring CoorsTek Medical, we will be pairing the latest manufacturing technologies with unique machining and engineering capabilities, pushing for end-to-end solutions with the lowest possible lead times to our customers in the U.S. and worldwide.”

Expanding Capabilities

UnitedCoatings’ medical division also includes Eurocoating, Surface Dynamics, NanoSurfaces (acquired from CoorsTek in 2018), Anteco and Eurocoating Medical Technology Wuxi. Combined with CoorsTek Medical, the division is a 1,000-employee workforce in 16 production facilities across Europe, China and North America.

The purchase of CoorsTek Medical provides UnitedCoatings with access to leading orthopedic OEMs, D’Andrea said. It also fills capability gaps by adding design and supply chain services, as well as traditional manufacturing to the company’s offering.

“CoorsTek’s design and engineering, casting, machining and finishing capabilities fit perfectly into our actual array of services,” he said. “Matching engineering, machining and finishing capabilities with our almost 15 years of experience in making additive manufacturing a reliable technology for mass production will allow us to bring unique added value to our customers.”

Building Upon a 3D Printing Legacy 

Though CoorsTek is known for its expertise in ceramics, that part of the business is not included in the acquisition. Rather, UnitedCoatings is leveraging its own history in surface technology and metal 3D printing along with the acquisition of CoorsTek Medical to establish itself in the orthopedic contract manufacturing market and expand its international strategy.

“Our legacy has led us to oversee an important technological sector for the orthopedic market, innovating on the fronts of coatings, surface treatments and 3D printing,” D’Andrea said.

UnitedCoatings has more than 20 additive machines, including laser based and electron beam melting, dedicated to producing medical devices. We believe this to be one of the largest investments in 3D printing machines in orthopedics. This 3D printing capacity sets them apart from other large orthopedic contract manufacturers. As device companies contend with outsourcing their additive manufacturing to a small number of contract manufacturers, while simultaneously seeking a one-stop-shop partner, UnitedCoatings is potentially sitting in a prime position.

The acquisition of CoorsTek Medical is UnitedCoating’s largest, and it escalates their ambitious manufacturing, services and international strategies, D’Andrea said. “Our goal is to maintain and build leadership positions within the different supply chain steps through innovation, organic growth and acquisitions. At the same time, [we want to] offer global, integrated and streamlined solutions to the OEMs to become the best value-add contract manufacturer to the global medical device industry.”

 


Heather Tunstall is an ORTHOWORLD Contributing Editor.

2019-10-11T14:08:24+00:00 September 28th, 2019|