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UTI Corporation To Acquire MedSource Technologies (MEDT)


10/19/2005 5:11:04 PM

COLLEGEVILLE, Pa., April 28 /PRNewswire/ -- UTI Corporation today announced it has agreed to acquire Minneapolis-based MedSource Technologies, Inc. , making the new organization one of the largest contract manufacturing, design and engineering companies serving the medical technology market. Under the agreement, which was unanimously approved by MedSource's Board of Directors, the MedSource common stockholders will receive $7.10 per share in cash, upon the close of the acquisition. The aggregate transaction value is approximately $230 million, including assumed net debt. The deal is expected to close in the summer of 2004 and is subject to shareholder and regulatory approval.

UTI Corporation, whose lead equity sponsor is KRG Capital Partners, LLC, has received an equity financing commitment from DLJ Merchant Banking Partners, part of the family of funds of CSFB Private Equity, and debt commitments from a nationally recognized financial institution to support the transaction. UTI is privately held.

Both UTI and MedSource serve the medical device and medical technology markets with complete medical device contract manufacturing, fabrication of critical device components, sub assemblies and finished goods. In addition, both UTI and MedSource provide engineering, design, prototyping and a variety of other product development services.

"This acquisition allows UTI to continue fulfilling its mission to be the world's best order fulfillment and design organization to the medical device industry, as ranked by our customers," said Ron Sparks, President and CEO of UTI. "Through this acquisition, we will be able to offer our customers the widest array of capabilities possible, thereby allowing them to maximize return on their own resources and accelerate their speed to market," he said.

"We believe this acquisition is a tremendous strategic opportunity for UTI and are excited about the prospects of combining UTI and MedSource to create the largest player in our fast-growing market sector," said Bruce Rogers, Co-founder and Managing Director of KRG Capital and Chairman of UTI Corporation. "We see this as an opportunity to further strengthen UTI's partnership with the world's leading medical device companies by providing them with the broadest manufacturing and design capabilities in the industry."

"We are pleased to have a chance to partner with KRG Capital Partners, LLC and invest in UTI to acquire MedSource," said Andy Rush, Managing Director of DLJ Merchant Banking Partners. "Combining UTI and MedSource creates the leader in the fast growing medical technology outsourcing market."

The newly combined entity will be renamed and re-organized into operating divisions aligned with key customer markets. "These focused operating divisions -- spotlighting cardiology and cardiac surgery, endoscopy and orthopedics -- allow us to get even closer to the customer and see the markets the way they do," Mr. Sparks said.

Examples of UTI's impact in the medical technology market include providing a wide variety of materials and services for products such as stents, stent tubing, endoscopic devices, orthopedic plates, screws and fixation devices; a large variety of finished instruments for cardiology, endoscopy and orthopedics; and engineering and design work in all of these specialty areas. UTI customers typically benefit from a significant reduction in cost of goods sold while increasing productivity, capacity, quality and overall customer service levels.

About UTI Corporation

UTI provides fully integrated contract manufacturing services to medical device manufacturers worldwide in the cardiovascular, endoscopy and orthopedic markets. UTI can help speed new products to market and manage mature product lines, allowing companies to refocus internal resources more efficiently. The company's design center provides clients with rapid prototyping and engineering support. In addition, UTI offers a comprehensive portfolio of applied technologies and manufacturing solutions, with particular expertise in state-of-the-art fabrication and plastic/metallic injection molding. A Class III/PMA-experienced manufacturer, UTI is equipped to manage projects from assembly to direct-to-inventory finished goods. UTI employs 2000 people at 13 specialized facilities in five countries.

For more information please visit http://www.uticorporation.com/.

For further information please contact: investors, Stewart Fisher, UTI Chief Financial Officer, +1-610-409-2225, fishersa@uticorporation.com; or media, Susan Benton of FischerHealth, +1-310-577-7870, ext. 166, sbenton@fischerhealth.com, for UTI.

UTI Corporation

CONTACT: investors, Stewart Fisher, UTI Chief Financial Officer,+1-610-409-2225, fishersa@uticorporation.com; or media, Susan Benton ofFischerHealth, +1-310-577-7870, ext. 166, sbenton@fischerhealth.com, for UTI



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