LISI Medical to Acquire Alcoa Remmele

LISI Medical, a contract manufacturer, signed a Stock Purchase Agreement with an Alcoa subsidiary to acquire its Remmele Medical operations for €90MM (~US $102MM). The transaction is expected to close in 2Q16. For 2015, Remmele posted revenue of $70MM.

Remmele is a unit of Alcoa Titanium & Engineered Products, manufacturer of minimally invasive surgical components for spine and other markets. Remmele provides precision machining of materials (titanium, stainless and PEEK) for orthopaedic and spinal implants, minimally invasive surgical components and devices, etc. The merger combines two manufacturing facilities totaling 100,000 square feet in Minnesota and a staff of approximately ~350. At closure, LISI Medical will operate at $150MM in annualized sales revenues.

Source: LISI Group

El-Tronic was rolled into Remmele in 2008. RTI International Metals acquired Remmele Engineering in 2012, and was itself acquired by Alcoa in 2015.

Thus, as Tecomet CEO Bill Dow said, “You’ll continue to see consolidation among the bigger contract manufacturers, but just as importantly, with the thousands of smaller contract manufacturers that are going to have to find a bigger partner in this business space to maintain viability moving forward.”