Moog Inc. has taken another step out of the medical device business.
The Elma-based maker of motion-control equipment sold its Moog Medical Devices location in Rush, just south of Rochester, and MMC Sterilization in Erie, Pa., to Tartan Holdings LLC. Tartan formed a new company with those two operations, called IuvoBioscience. Terms of the deal, which was completed Friday, were not disclosed.
All of the affected employees were offered jobs with the new company, said Ben Burton, president of IuvoBioscience and CEO of Tartan Holdings. About 40 employees work at the Rush location and 10 at the Erie site.
The Rush facility provides contract laboratory and testing services to the pharmaceutical and medical device industries. The Erie site provides sterilization services for the medical device and pharmaceutical industries.
In July 2013, Moog hired an investment banker to help find a buyer for its medical device operation, which has fallen short of expectations after Moog pushed into that business in 2006. Moog had already sold the Buffalo operation of its Ethox Devices segment for $5 million; the two operations just sold to Tartan were originally part of Ethox, as well.
After a potential deal to sell Moog’s entire medical device business fell through in 2014, Moog said that it was open to deals involving only portions of it. Moog said that a tougher regulatory climate had slowed the new-product approval process, inhibiting its ability to bring new products to market in that segment.
In Moog’s fiscal first quarter, which ended Jan. 3, Moog said sales in its medical devices segment declined by 3 percent from the year before, to $31 million. In its annual report, Moog projected flat sales for its medical device segment this year.
Moog still has about 620 employees in its remaining medical device locations, which are in Salt Lake City, Utah, Costa Rica and Lithuania, said Ann M. Luhr, a Moog spokeswoman. Those operations consist of its pumps, sets, sensors and hand piece businesses.