Nissha Acquired U.S.-based Medical Devices Contract Manufacturer

June 27, 2018

Nissha Co., Ltd.

Nissha Co., Ltd. has acquired as subsidiaries of its Medical Technologies segment Sequel Special Products, LLC, engaging in contract manufacturing of medical devices, and its affiliated company RSS Design, LLC, engaging in the development and design of medical devices. The share acquisition took place as of June 25, 2018, through the Nissha consolidated subsidiary, Graphic Controls Group.

Nissha introduced the Medical Technologies segment and achieved full-scale entry into the medical devices market in September 2016, with the acquisition as a subsidiary of U.S.-based medical devices manufacturer, Graphic Controls Group. Offerings at present focus on medical electrodes, medical surgical devices, and other products for cardiology, which are highly related to Nissha’s core technologies of “Patterning”, “Coating”, “Lamination”, “Molding”, and “Patterning”. These are provided in global contract manufacturing services for major medical devices manufacturers, and produced and distributed as a proprietary brand for hospitals.
Through these business models, Medical Technologies aims to extend our capabilities such as product development and design, and enrich its lineup of distinctive products toward sustainable growth.

With major medical device manufactures increasingly focusing on R&D and marketing activities and preferring to outsource the manufacturing process, the Medical Technologies segment promotes the expansion of contract design and manufacturing services as a main growth strategy. Its facilities include innovation centers for design & development activities and production centers producing diagnostic sensing devices, electro-surgical devices, catheter guide wires, and other medical devices and surgical instruments for minimally invasive surgery.*1 This acquisition will provide the Medical Technologies segment with new sales channels in contract manufacturing, increased production capacity, and expanded product development and design functions to improve its value chain from development to production to sales.

Sequel products are currently not produced or distributed in Japan.

*1: Medical examination and treatment procedures that minimize the physical risk for the patient

Outline of Sequel

Trade name Sequel Special Products, LLC
Location 1 Hillside Drive, Wolcott, CT 06716, U.S.A.
Representative Scott Debisschop
Founded 1994
Business outline Contract manufacturing of surgical instruments for minimally invasive surgery and orthopedics
Net sales USD 23,500,000 (approx. JPY 2,585,000,000, fiscal year ended December 2017)
Based on an exchange rate of USD 1 = JPY 110

Outline of RSS

Trade name RSS Design, LLC
Location 1 Hillside Drive, Wolcott, CT 06716, U.S.A.
Representative Jeff Radziunas
Founded 2013
Business outline Design and prototyping of medical devices
Net sales USD 1,900,000 (approx. JPY , fiscal year ended December 2017)
Based on an exchange rate of USD 1 = JPY 110

Outline of Graphic Controls Group

Location 400 Exchange Street, Buffalo, NY 14204, U.S.A.
Representative Sam Heleba, President and CEO
Senior Vice President, General Manager of Medical Technologies Business Unit, Nissha Co., Ltd.
Founded 1909
employees 1,072 (Graphic Controls Group consolidated, as of March 31, 2018)
Business outline Production and sales of medical devices and business media
Net sales USD 163,152thousand
(Graphic Controls Group consolidated, fiscal year ended December 2017)

Outlook for the Future

The impact of the acquisition on Nissha’s consolidated business results is expected to be minor. Prompt notification will be made should the need arise to revise forecasts or disclose other matters.
- The content of the web is information at press time, may change thereafter without notice. Due to risks and uncertainties, predictions may differ from actual results. Please be forewarned.
- "Nissha" is a generic name of Nissha Co., Ltd. and "Nissha Group" is a Nissha Co., Ltd. and its group companies.

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