Shandong Weigao Group Medical Polymer agreed to pay $850 million for Argon Medical Devices, as the Chinese company looks to expand its footprint overseas.
Weigao Group, which makes medical devices, orthopedic and blood purification products, is trying to fill out its product portfolio and diversify its revenue stream, according to a filing with the Hong Kong Stock Exchange. The company said it expects “significant growth opportunities” for Argon Medical’s products in China, according to the filing.
Plano, Texas-based Argon Medical makes single-use speciality medical devices for biopsy, vascular clot management and drainage. Weigao said it plans to leverage its sales and marketing network and extensive hospital and distributor base in China to expand Argon’s business into smaller cities there.
The deal involves the creation of a joint venture between Weigao and an unnamed private equity player, which will own 10% of the JV.
Material from Reuters was used in this report.