Tokyo - Mitsubishi Chemical Corp. (MCC) is acquiring the thermoplastic polyurethane elastomer (TPU) business of US-based AdvanSource Biomaterials Corp. (ASB).
The Japanese company is purchasing the business through its South Carolina-based Mitsubishi Chemical Performance Polymers, Inc., MCC said 26 Nov.
The transaction is expects to be completed by January 2020, according to the Japanese group.
Headquartered in Wilmington, Massachusetts, ASB has a TPU business in the US, and its products are used mainly for medical devices. The unit registered sales of $3 million (€2.7 million) last year.
With features such as biocompatibility, flexibility and antimicrobial properties, ASB products are suited for applications such as cardiovascular catheters and other devices designed for body insertion.
The acquisition has been made in anticipation of growth in the TPU market for medical devices, driven by an aging population, the Japanese chemicals company said.
MCC’s performance polymers business has expanded in recent years in various global regions, mainly through mergers and acquisitions.
It currently provides various types of elastomer solutions and aims to further expand its product portfolio to TPU technologies, the MCC statment added.
In particular, the business aims to accelerate its market development by acquiring material certifications and sales channels in the US medical device market.