Medical device manufacturer CardioTech International Inc. has bought plastics-oriented contract manufacturer CarTika Medical Inc. for $6.6 million.
CardioTech said the acquisition will beef up its contract manufacturing capabilities and provide cash flow. CarTika, based in Plymouth, Minn., offers injection molding, thermoforming, mold making and two clean rooms at its 17,000-sq.-ft. facility.
The company, which had sales of about $5.5 million and 50 employees, specializes in complete catheter assemblies. CarTika had net profits before taxes of $1.3 million and cash flow of $1.2 million, according to a Securities and Exchange Commission filing by CardioTech.
CardioTech paid $1.6 million in stock and $5 million in cash for CarTika, the SEC filing said.
Wilmington-based CardioTech, with annual sales of $22 million, makes cardiac products for medical device firms and also develops proprietary products using patented biomaterials, including polyurethanes for implantable devices.
The company is in clinical trials with an artificial PU vein to be used in heart bypass operations, when it is too risky to take a vein from the patient's leg, a spokesman said.
This story was written by Steve Toloken, a staff member of Plastics News.