Chinese medical devices maker to buy US-based Argon for $850 mln

Shandong Weigao Medical Polymer

24/09/2017 15:38

HONG KONG, Sept 24 (Reuters) - China's Shandong Weigao Group 
Medical Polymer Co Ltd  1066.HK  has agreed to acquire US-based 
and unlisted Argon Medical Devices Holdings Inc for $850 
million, as part of its overseas expansion drive. 
    Weigao Group, mainly engaged in the production and sale of  
medical devices, orthopaedic and blood purification products, 
has been seeking opportunities to bolster its product portfolio, 
the company said in a filing to the Hong Kong Stock Exchange. 
    The company has also been looking to diversify its revenue 
stream to increase the contribution of sales from overseas 
markets, and expects "significant growth opportunities" for 
Argon Medical's products in China. 
    Privately-held Argon Medical makes and sells single-use 
speciality medical devices for procedures. Its product portfolio 
mainly consists of biopsy products, vascular clot management 
devices and drainage catheters, among others. 
    Weigao Group said Argon Medical would be able to benefit 
from the Chinese company's sales and marketing network and in 
particular its extensive hospital and distributor coverage to 
expand its business into smaller cities in China. 
    For the purpose of the acquisition, a joint venture has been 
formed by Weigao International, which is a wholly-owned unit of 
Weigao Group, and a Cayman Island-incorporated company that is 
owned by a private equity firm engaged in investment management. 
    Weigao International owns 90 percent of the joint venture, 
while the unnamed partner will hold the remaining stake. 
  
 
 (Reporting by Sumeet Chatterjee; Editing by Keith Weir) 
 ((sumeet.chatterjee@thomsonreuters.com; +852-2847 2094; Reuters 
Messaging: sumeet.chatterjee.thomsonreuters.com@reuters.net)) 
 
Keywords: ARGONMEDICAL M&A/WEIGAO GROUP