UFP Technologies (UFPT) 15th Annual Midwest IDEAS Investor Conference summary

Business overview and value proposition

• Designs and manufactures custom solutions for medical devices, sterile packaging, and engineered products, generating $565 million in revenue with over 4,000 employees across 20 factories in five countries.

• Maintains exclusive or semi-exclusive access to advanced materials through multi-year partnerships with top vendors, enhancing innovation and product protection.

• Serves over 2,000 customers, including 25 of the top 30 global medtech companies, with a process emphasizing rapid prototyping, in-house tooling, and custom equipment.

• Focuses on high-margin, customer-funded product development, leveraging expertise and strong customer relationships to secure long-term manufacturing contracts.

• Primary markets include robotic surgery (30% of revenue), interventional surgical, and patient services, with significant growth in robotic drapes and infection prevention products.

Growth strategy and market positioning

• Executes a two-pronged growth strategy: internal focus on markets with best fit and highest margins, and external collaboration with customers to guide technology and geographic expansion.

• Shifted from general manufacturing to specialized medtech segments, driven by lessons from past business losses and a focus on value-added markets.

• Expanded internationally at customer request, establishing operations in Ireland, Mexico, Dominican Republic, and Costa Rica to meet demand for low-cost manufacturing and plug revenue leaks.

• Recent acquisitions have added capabilities, geographic reach, and eliminated competitors, accelerating strategic goals and providing immediate synergies.

• Maintains a disciplined acquisition approach, prioritizing cultural fit and operational alignment, with recent deals ranging from $5 million to $14 million multiples.

Recent acquisitions and operational impact

• Acquired Welch for thin film welding expertise, enhancing device manufacturing capabilities and customer value.

• Purchased AJR to strengthen patient transfer solutions, leveraging existing customer relationships and expertise in international transfers.

• Added Marble for high-speed die cutting and a valuable distributorship, improving internal supply chain and product offerings.

• Acquired AQF in Ireland, eliminating a competitor and providing a head start on planned business moves, with immediate operational and pricing benefits.

• Integration of acquisitions is managed for low risk and rapid realization of synergies, supporting long-term growth.