FAQs: Acquisition of PMP by Röchling Medical
Who is acquiring PMP?
Precision Medical Products, Inc., is being acquired by Röchling Medical, a division of the Röchling Group, a family-owned German company with locations throughout the world. The European headquarters of Röchling Medical is in Mannheim, Germany.
Does Röchling Medical have a particular specialty?
Röchling Medical offers customers a wide range of contract manufacturing services, with a focus on plastics processing and precision assembly technologies, for the medical, diagnostics and pharmaceutical industry. The company’s products are used in drug delivery devices, primary packaging, surgical instruments and diagnostics disposables.
When will the acquisition be complete?
The acquisition will be finalized legally as of May 25, 2018. However, in terms of signage, corporate stationery and other identity issues, it will take a number of weeks to transition from Precision Medical Products to Röchling Medical.
This seems sudden and, truthfully, out of left field. When did PMP start entertaining the idea of a merger or acquisition?
PMP’s leadership, including President and CEO Doug Yocom and the other partners, have always been focused on growing the business, serving our customers, and making sure our employees enjoy a great working environment with plenty of room to grow professionally. Over the years, we have considered a number of business opportunities but always through the lens of those three priorities. “Being acquired” has never been the goal of PMP’s growth plans, but the opportunity with Röchling Medical made sense strategically, and we feel confident it will benefit all of our stakeholders.
What was it about Röchling Medical that attracted PMP leadership?
PMP and Röchling Medical are very similar. Both are privately owned companies with a strong commitment to employees, customers and the local community. Also, the two businesses are operationally similar, with complementary cultures and work environments.
What about the business fit?
That’s the really good news. 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. This is a good thing for all of us, as the company will continue to grow, diversify and innovate.
Does that mean that the Denver location, along with all of the employees, will remain intact?
Yes. The PMP building as you know it, along with all of our employees, will remain. PMP will be an integral part of Röchling’s US strategy to grow their Medical Business Segment.
What about the Precision Medical Products name?
The PMP name will cease being used as of May 25, 2018. At that time, we will become Röchling Medical Lancaster.
What is going to happen to current PMP leadership?
The most significant change is that PMP President and CEO Doug Yocom will be replaced by Lewis Carter, President of Röchling Medical. With this change, the PMP team will be in very capable hands. Mr. Carter earned a Bachelor of Science in business administration at West Virginia University and has been involved with the Röchling group for his entire 34-year career. In September 2015, Mr. Carter assumed the role of president of the Röchling Medical business, where he manages all Life Sciences entities.
Doug will not be leaving the company. In fact, he will remain for 12 to 18 months to ensure a smooth transition, and he will be available throughout this time to any employee who has questions or concerns. George Weaver and Jerry Holleran will be retiring as part of this transition and the Directors will retain their positions and remain with the company in their current capacities. Bob Rhoads will remain with the new organization in the position of Vice President of Operations.