An Important Announcement from PMP President and CEO Doug Yocom for all Employees, Customers, Vendors and Suppliers
To everyone in the PMP family:
Ever since Arrow Precision Products transitioned to Precision Medical Products, Inc., in 1997, our company has held true to some very basic principles: treat our employees with loyalty and respect and serve our customers with excellence and innovation. For 20+ years, I think we have lived up to those principles every day, with every employee and every customer.
PMP has been equally committed to a growth and diversification strategy that would ensure the long-term success of our customers and our business. It’s why we acquired full ownership of Hershner Enterprises, an injection and insert molding company, soon after becoming PMP. The acquisition of Hershner enabled PMP to add plastic processing and manufacturing capabilities to our already extensive metalworking and assembly portfolio — and to position ourselves as a premier contract medical manufacturer capable of delivering on any project, regardless of size and materials requirements.
Recently, a similar opportunity — an opportunity to take a leap forward — presented itself to PMP. Röchling Medical, a contract medical device manufacturer located in Rochester, New York, and a division of the Röchling Group, a family-owned German company, approached PMP about acquiring our assets to strengthen its offering in North America. I can tell you that the proposal sparked a great deal of soul-searching, debate and analysis among all PMP partners. For me personally, it was one of the most difficult business deals I’ve ever had to evaluate and consider. In the end, however, I made the decision that the opportunity presented by Röchling Medical was too good to pass up — for employees, customers and partners. As of May 25, 2018, Precision Medical Products, Inc., will be acquired by Röchling Medical.
Let me outline the reasons why I think this is a good move for PMP customers, suppliers and employees:
● First and foremost, the Denver facility and all of its employees will remain and will continue business as usual. The biggest change is that I will no longer be the President and CEO. I along with Bob will remain, now as employees, facing this new chapter right alongside team members, suppliers and customers. The role of president will be assumed by Lewis Carter, President of Röchling Medical. We’ve met Lew on numerous occasions over the past few years and I can assure you that Lew embraces all of the same morals and values that we do.
● Second, there is a strong alignment between the cultures of the two organizations. We are both privately owned businesses and we both possess a strong commitment to employees, customers along with the local community. I would have never considered an offer from a company that didn’t share PMP’s sense of integrity and our strong commitment to always do the right thing.
● Next, the talent pools of the two companies dovetail nicely. We believe that when the skilled professionals of the two organizations come together, there will be a synergy that enables the company to deliver more innovative solutions more efficiently than ever.
● Finally, the business fit between PMP and Röchling Medical is undeniably strong. Röchling Medical is well-versed in the field of plastics processing and features an extensive set of molding capabilities in its Rochester facility. PMP, of course, is strong in both metals and plastics, but it’s our expertise in metal processing that makes us such a good fit with Röchling Medical. We also have a wealth of assembly and packaging experience that will benefit the Röchling offering. Ultimately, this means we will have a stronger position in the market. We will be able to diversify the solutions we offer to our customers, and we will be a stronger competitor.
Despite having all of these logical reasons, we understand that many employees and customers may be shocked and feel uncertain when they hear this news. This is expected, but we want you to know that all of us on the PMP leadership team believe this is the right move, at the right time. I also want all of you to know, whether you’re internal or external, that I will be available, around the clock, to answer questions and to hear your concerns.
In the meantime, we have put together a list of Frequently Asked Questions that covers the basics of the acquisition. I encourage employees to read through the questions and then note anything that remains unclear. Bring those issues to either Bob or myself, and we will discuss them over the coming weeks.
Thank you to all PMP employees for their dedication, hard work and tireless commitment to the success of our business. And thank you to our customers, who have trusted us to help them deliver high-quality medical devices to the patients who rely on them every day. We know that this acquisition will be a good thing for all of us and that, as the newly formed Röchling Medical Lancaster, we will be stronger and better positioned for the future.
President and CEO
Precision Medical Products, Inc.