mynth
← DATABASE
04/2020

PARAGON MEDICAL acquired by AMERICAN SECURITIES

UNITED STATES Life Sciences / Medical Devices EV $500M–1.5bn

Context

The divestiture of the Life Sciences division by NN inc. (Paragon Medical) to American Securities represents a pivotal structural transformation for both organizations. For the seller, the transaction provides a necessary capital infusion to significantly reduce corporate debt and reposition its remaining industrial platform toward power and mobile solutions. The strategic rationale for the move centers on the acquirer’s objective to combine the division’s high-precision surgical capabilities with its existing portfolio company, MW Industries, thereby creating a comprehensive engineering powerhouse for specialized fasteners and medical components. By adding this technical specialist to its healthcare portfolio, American Securities seeks to capitalize on the industrial synergies existing between its various holdings in precision manufacturing, notably MW Industries. This capital allocation is designed to capture the resilient, non-discretionary demand inherent in the orthopedic and surgical instrumentation sectors during a period of macroeconomic instability. The financial sponsorship provides the target with the strategic resources required to accelerate innovation in minimally invasive technologies without the constraints of its previous debt-laden corporate structure. Ultimately, this portfolio maneuver solidifies the platform's standing as a primary enabler of critical component supply in global healthcare and industrial markets.

In the past, Paragon Medical was acquired by Nn in 2018 as part of its expansion strategy.

PARAGON MEDICAL, which reported an EBITDA margin of [members only] in 2020, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, representing a discount to the average currently observed in the Healthcare & Pharma sector (14.3x).

-> Deep-dive in Healthcare & Pharma market trends

Target

Paragon Medical functions as a premier technology-driven organization specializing in the design, engineering, and manufacturing of critical medical components and surgical instruments. The entity’s business model is built on an industrialized framework as a contract development and manufacturing organization (CDMO), providing technical operational depth to global medical device leaders. Its value proposition is anchored in high-precision micro-machining and specialized metallurgy for orthopedic implants, robotic surgical tools, and drug delivery systems. Strategically, the firm focuses on being a mission-critical partner in the healthcare supply chain, offering end-to-end solutions from prototyping to high-volume commercial production. By maintaining a diverse portfolio of single-use instruments and implantable hardware, the organization ensures the structural reliability of advanced therapeutic procedures. The entity prioritizes manufacturing excellence and technical agility to facilitate the rapid scaling of medical innovations in a highly regulated landscape.

Ent. Value

$500M–1.5bn

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2020
$250–500M
$50–100M
[members only]
2019
$250–500M
$50–100M
[members only]

Other operations with PARAGON MEDICAL

Other operations with PARAGON MEDICAL

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
11/2023AMETEKPARAGON MEDICALUNITED STATESMedical Devices
05/2018NNPARAGON MEDICALUNITED STATESMedical Devices

REFERENCES

Valuation range: EV $500M–1.5bn

Revenue range: $250–500M

EBITDA range: $50–100M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of PARAGON MEDICAL by AMERICAN SECURITIES are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: paragon medical

Acquirer: american securities