UFP Technologies Targets 12%-18% Growth as Medical Device M&A Pipeline Builds

UFP Technologies, Inc. (NASDAQ: UFPT) aims to achieve 12%-18% annual growth through a combination of organic expansion and acquisitions, with long-term targets of 28%-31% gross margins and 17%-20% adjusted operating margins. The company is exploring 5-10 potential acquisitions, targeting businesses with $5 million to $30 million in EBITDA to bolster customer base, technology, market segments, and geographic reach.

UFP Technologies sees significant potential in the fragmented medical-device outsourcing market, where it currently holds less than 1% market share. UFP Technologies, a contract development and manufacturing organization, provides engineered components, sterile packaging, and related products for various medical-device applications.

President and Chief Executive Officer Mitch Rock outlined the company's strategy to leverage its materials and manufacturing capabilities across the medical-device industry, which is worth approximately $500 billion and growing at about 6.5%.