Greatbatch Inc. continued its acquisition binge by agreeing to buy rechargeable battery systems maker Engineered Assemblies Corp. for about $12 million in cash.
The acquisition, Greatbatch's third in two weeks and its fifth this year, gives the Clarence-based medical component manufacturer a wider range of commercial power products, especially for rechargeable battery systems, said Thomas G. Hook, Greatbatch's president and chief executive officer.
EAC, which is based in Teterboro, N.J., and has a plant in China, will expand Greatbatch into the market for external medical products and give the company a wider range of products and technology that is expected to help it provide more comprehensive offerings to its customers.
EAC also will give Greatbatch's commercial power business additional capacity that could be used by its existing commercial power business, which currently is operating under capacity constraints while it builds a new factory in Raynham, Mass. That new plant is not expected to be fully operational for another year, Hook said Tuesday.
EAC is expected to have $20 million to $23 million in annual sales this year. The acquisition is not expected to have an impact on Greatbatch's profits either this year or next year, except for one-time charges for expenses on research and development projects that are in progress. After that, EAC is expected to add to Greatbatch's profits, Hook said.
The acquisition, which is expected to close by the end of this month, will expand Greatbatch's line of rechargeable batteries, allowing the company to offer both single-use and rechargeable battery products to its customers, said Susan Bratton, senior vice president.
Greatbatch last week acquired IntelliSensing LLC, an Orchard Park company that makes wireless temperature and pressure sensors used in the oil and natural gas industry, as well as the military and aerospace markets. Greatbatch paid $3.9 million for the company, which has less than $1 million in annual sales.
The company also purchased Quan Emerteq, a Blaine, Minn., company that makes therapy delivery products, in a $55 million deal that is expected to add $20 million to $24 million to Greatbatch's annual sales.
Earlier this year, Greatbatch bought Cleveland-based Biomec Inc. in an $11.4 million deal that gave it control of a developing coatings technology that can be used on medical devices to reduce the risk of clotting, inflammation and infection.
It also paid $102 million to buy Enpath Medical, a suburban Minneapolis company that makes a line of advanced catheters that can be used to reach parts of a patient's body that normally can't be reached by traditional catheters, along with products that help doctors insert them.