Receive our newsletter – data, insights and analysis delivered to you
  1. News
September 24, 2017updated 22 Nov 2021 9:32am

China’s Shandong Weigao to acquire Argon Medical for $850m

Chinese company Shandong Weigao Group Medical Polymer (Shandong Weigao) has entered an agreement to acquire US-based Argon Medical Devices for $850m.

Chinese company Shandong Weigao Group Medical Polymer (Shandong Weigao) has entered an agreement to acquire US-based Argon Medical Devices for $850m.

To carry out the acquisition, Shandong Weigao has formed a joint venture (JV) through its wholly owned subsidiary, Weigao International.

Weigao International holds 90% stake in the JV, while the remaining 10% is held by an undisclosed Cayman Islands-based firm run by a private equity company.

Argon Medical Devices develops, manufactures, sells and distributes medical devices for application in interventional oncology and vascular interventional procedures.

The firm’s portfolio includes biopsy products, vascular clot management devices, drainage catheters and guidewires.

Shandong Weigao expects that the acquisition, which is part of its overseas expansion strategy, will allow increased sales contribution from international markets.

Content from our partners
The added value of Qarad’s multilingual freephone service to their eIFU solution
Small and simple: how medical device manufacturers select materials
Precision wire: The future of bespoke medical treatment
“Shandong Weigao expects that the acquisition, which is part of its overseas expansion strategy, will allow increased sales contribution from international markets.”

The addition of clinically differentiated interventional devices is expected to expand the firm’s current product portfolio, which includes single-use consumables, orthopaedic implants, blood purification dialysis and equipment, as well as dialysis centres.

Argon Medical Devices is also expected to leverage Shandong Weigao’s existing sales and marketing network for business expansion.

According to the agreement, a wholly owned subsidiary of the JV will fund $420m of the total consideration with debt financing, while the JV will provide the balance.

Weigao International plans to fund its pro-rata cash payment to the JV from its internal resources.

Upon completion of the transaction, Argon Medical Devices will be merged as a subsidiary into Shandong Weigao.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The medical device industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU