Vention Medical has signed a definitive agreement to sell its device manufacturing business to medical device services provider MedPlast.
Financial details of the agreement have not been disclosed.
The transaction is expected to allow MedPlast to offer a range of services to medical device and equipment manufacturers, as well as strengthen its assembly and packaging capabilities.
Estimated to more than double its size, MedPlast also intends to leverage this deal to expand its footprint to 22 manufacturing facilities in specific markets across North America, Central America, Asia and Europe.
The firm plans to create more than 3,500 jobs for engineers, technicians and assembly workers in medical device sectors such as surgical, orthopedic and diagnostic.
MedPlast chief executive officer Harold Faig said: "We will provide our customers a broad spectrum of integrated manufacturing capabilities and services from strategic locations around the world.
"This is something our customers have been asking for, and we are committed to continuing to expand our capabilities in areas that will bring value to our customers."
Vention Medical expects that its common customers with MedPlast will benefit from the combined offering and shared commitment to provide quality standards and facilities in the industry.
In December last year, MedPlast received investment from private equity firms JLL Partners and Water Street Healthcare Partners, enabling the firm to extend its offering.
The acquisition is expected to be complete in the second quarter of this year.