Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHILADELPHIA, PA-The new owner of Cycam Inc., a supplier of hip, knees and shoulder implants to the medical device industry, says there’s a good chance the firm’s50,000-sf facility in Houston, PA will be sold off as part of a sale-leaseback deal. MedSource Technologies officials say week it has agreed to buy Cycam for $24 million in cash and stock, and as a result of the deal, they will look to do a sale-leaseback of Cycam’s facility at 149 Johnson Rd. in the city about 20 miles south of Pittsburgh.

“We’re not in the real estate business, so we will be looking at opportunities to do a sale-leaseback,” says Richard Effress, chief executive of Minnetonka,MN-based MedSource, which provides manufacturing services to the medical device industry.

Effress says the facility, which is near a residential neighborhood, is undergoing an expansion. Cycam, with nearly 100 employees, provides machining, engineering and research and development capabilities to the reconstructive implant market, which accounts for more than 40% of the $11.9 billion orthopedic device market. Effress says he likes both their plastic machining and implant coating technologies, as well as the opportunity for MedSource to cross-sell to their customer base, which includes four of the world’s eight largest orthopedic device companies.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt. NET LEASE Fall 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.