Nolato grows in US with Contour acquisition

In 2010, the newly named Nolato Contour business is expected to record sales of $22m (€17m), with more than 80% of that coming from the medical business.

"This acquisition will give us a foundation on which to establish production in North America [and] a presence in the region from Minneapolis to Chicago,” said Christer Wahlquist, head of Nolato's medican business, in a statement. He identified this region as one of four key medical technology clusters in the US.

Nolato said the acquisition of Contour for $22m (€17m), announced July 26, would have a “marginal positive impact” on its corporate earnings during 2010.

In fiscal 2009, Nolato Medical had $632m (€487m) in sales and earnings of $89m (€69m).

While Medical is the smallest business segment of Nolato AB, representing just 27% of its $2.6bn (€2bn) sales in 2009, it accounted for 46% of its 2009 earnings of Nolato.

Contour founder Barry Grant will remain as president of the Nolato Contour operation. The company has 180 employees and a 900 sqm manufacturing plant that includes two clean rooms.

“Contour Plastics is a well-managed company, and is a good fit for our growth strategy and our ambition to provide a global offering with regional medical technology production,” said Hans Porat, CEO and president of Nolato.

Nolato Medical has plants in Sweden, Hungary and China and focuses on drug-delivery products, catheter balloons, blood-collection systems and pharmaceutical packaging.