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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.

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