UFP Technologies, Inc. (NASDAQ:UFPT) shares are trading higher after the company disclosed the buyout of AJR Enterprises, LLC for $110 million.
AJR Enterprises specializes in developing and manufacturing single-use safe patient handling systems and generated sales of approximately $70 million in 2023 and $75 million in the trailing 12-month period that ended in March.
“We are very excited to add AJR Enterprises’ capabilities to our patient surfaces portfolio,” said R. Jeffrey Bailly, chairman and CEO of UFP Technologies.
UFP funded the transaction through borrowings under its amended and restated credit agreement.
“Patient surfaces and transfer devices are a growing market due in part to government guidelines and legislation around safe patient handling.”
“AJR’s ‘cut and sew’ manufacturing services and specialty fabrics expertise align very well with our strategy to bring more value to our customers through expanded capabilities and locations,” Bailly added.
As of March-end, UFPT’s cash and cash equivalents stood at $11.4 million.
UFP Technologies shares gained over 40% in the past 12 months. Investors can gain exposure to the stock via Professionally Managed Portfolios Congress SMid Growth ETF (NYSE:CSMD) and Janus Henderson Small Cap Growth Alpha ETF (NASDAQ:JSML).
Price Action: UFPT shares are up 5.17% at $277.51 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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