NN, Inc. Announces Definitive Agreement To Acquire Paragon Medical


NN/Paragon Medical M&A Activity

Recently, suppliers have responded and reacted to the heightened OEM M&A activity that has occurred in the last few years.

Suppliers are joining forces and positioning themselves as full service solutions providers.

The NN, Inc. acquisition of Paragon Medical is the latest in a series of strategic transactions that has impacted eight companies in a five-year span:


NN, Inc. has entered into a definitive agreement to acquire Paragon Medical for US $375MM in cash. The transaction is slated to close during 2Q18. In the transaction, NN is acquiring PMG Intermediate Holding, the parent company of Paragon Medical, from Beecken Petty O’Keefe.

For 2017, Paragon posted revenue of $141.0MM.

The acquisition supports NN’s strategy to grow its Life Science revenue to $300.0MM in 2018, $150-$160MM of which is orthopaedic. The acquisition also positions NN as one of the 10 largest contract manufacturers in orthopaedics. Post-acquisition, NN’s top ten customers overall will include Johnson & Johnson, Medtronic, Stryker and Zimmer Biomet.

“Paragon strengthens our technical abilities, expands our product and finished device offerings, and adds key talent across our organization that will help us continue to drive growth in our end markets,” NN President & CEO Richard Holder said in a statement.

Paragon Medical, a Tier 1 manufacturer of orthopaedic implants, instruments, cases and trays, will join NN’s Life Sciences division. It was incorporated in 1991 and is headquartered in Warsaw, Indiana. Paragon’s services include engineering, manufacturing and logistics through its seven facilities that are located in Asia, Europe and the U.S. For 2016, Paragon posted $126.0MM in revenue, which grew by +11.9% to $141.0MM in 2017. Of its revenue, 23% derives from manufacture of implantable components, 33% from custom delivery systems (cases/trays) and 44% from surgical instrumentation.

Upon completion, the addition of Paragon Medical will yield a total of 44% of NN’s Life Sciences revenues deriving from Orthopaedics and Spine, combined. (Remaining markets to be addressed by NN’s Life Sciences portfolio include Delivery Systems, Extremities, Endoscopy, Surgical Tools and an undefined Other.)

NN designs and manufactures complex medical components, implants, instruments and devices for the global market, including orthopaedics. Headquartered in Johnson City, Tennessee, NN has 44 facilities in North America, Western Europe, Eastern Europe, South America and China. The company’s other brands include Bridgemedica, DRT Medical, Holmed, Trigon, Precision Engineered Products, etc., all of which have been acquired by NN since 4Q15.

Source: NN