Kidd & Company, a family office investment firm focused on the lower middle market, has sold NextPhase Medical Devices, to Arterex, a medical device contract manufacturer, indirectly invested in by Investindustrial Growth fund. Terms of the transaction were not disclosed.
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NextPhase is a class II and III medical device contract manufacturer of complex electromechanical devices, active implantable devices, and single use disposables in North America. It provides design and engineering, manufacturing and assembly, quality and regulatory, and supply chain and logistics management services enabling its customers to bring low-to-medium volume complex medical devices to market.
KCO initiated its investment in NextPhase in 2015 through a control investment in Nexcore Technology, which was founded by Milton Frank in 1999 as a manufacturer of complex electromechanical medical devices to medical OEMs. Upon completion of the initial platform acquisition, KCO added Carlo Colesanti and James DiVizio as NextPhase’s CEO and CFO, respectively, and made several investments and enhancements to the initial platform through additions to people, processes, and infrastructure. In 2017 Nexcore acquired Phase 2 Medical Manufacturing and rebranded as NextPhase Medical Devices as a provider of design, engineering, development and manufacturing of capital equipment and single-use disposable devices to leading and emerging medical device OEMs. In 2021, NextPhase acquired Proven Process Medical Devices to enhance its design and engineering capabilities and to add specific manufacturing expertise in new areas, such as implantable devices. Today NextPhase operates out of three North American facilities in New Hampshire, Massachusetts and Tijuana, Mexico.
Ken Heuer, KCO principal and NextPhase Board member said: “We have been honoured to work with Carlo, Jim, and each of the previous business owners and their respective organisations over the last eight years to generate tremendous growth, jobs and prosperity for everyone involved. We set out with the goal of building a comprehensive supply chain partner to the top medical device manufacturers and could not be happier with what the team has been able to achieve.”
Carlo Colesanti added: “We appreciate the experience and resources that KCO brought to bear on behalf of the business and are excited for the next stage of our growth.”
