Microtek Medical Holdings Inc.'s Netherlands-based subsidiary Microtek Medical B.V. has acquired the majority of International Medical Products B.V. in Holland from Cardinal Health Inc. to broaden its European operation.
The company bought business units that dip-mold medical devices with polyurethane, latex and other elastomer-based materials. The products primarily are ultrasound probe covers and other equipment covers, along with PU tubing, catheter balloons and water stand-off balloons.
Several other units included in the sale are those that handle cardiac thoracic drain systems, gynecological devices and wound care products, according to a Cardinal Health spokeswoman.
Microtek also purchased IMP's factory in the Netherlands, she said, and about 300 employees will transfer to Microtek. Financial terms weren't disclosed.
Cardinal Health retained its medical kit business, which it's moving from the Holland site to the firm's production facility in France, the spokeswoman said.
``We're basically selling all the assets of IMP, except for the kitting business,'' she said. ``We're essentially divesting some non-core assets that don't fit with our strategy.''
Officials at Microtek couldn't be reached for comment, but President Dan R. Lee said in a prepared statement the purchased units will significantly enhance the company's product offerings within the ultrasound specialty, both in Europe and the U.S.
He said the other acquired products are complementary to Microtek's equipment and patient draping goods, which specifically addresses its goal of having more products for bundling and sale to its customers.
Lee said the acquisitions expand the firm's products into multiple specialties, including radiology, gastroenterology, cardiology, gynecology and urology.
``By expanding our European presence, the IMP acquisition offers a great deal of flexibility and operating leverage to enable future expansion of our international businesses,'' Lee said.
Microtek's sales will be boosted by about $12 million annually. However, the company said it doesn't expect the acquired businesses to impact earnings until 2005.