Owens & Minor, a $2 billion New York Stock Exchange-listed medical supplies company, has announced it has signed a definitive agreement to acquire ArcRoyal, a surgical kit maker based in Kells, Co Meath.
ArcRoyal, formerly called DeRoyal, was founded in 1992 and employs over 300 people. It exports surgical procedure trays to hospitals in more than 30 countries.
No price was disclosed by Owens & Minor who revealed the agreement in a stock exchange announcement. The transaction is subject to normal regulatory approvals and is expected to close in the fourth quarter of 2014.
The Irish company was advised on the agreement by IBI Corporate Finance. It is an unlimited company so financial statements are not publicly available. It is understood to be owned by its management and it has a 14,000sq m facility in Meath.
"The acquisition of ArcRoyal will greatly expand our ability to produce kits, packs and trays for the healthcare market, and will provide us with immediate reach into European markets," said James L Bierman, president and chief executive of Owens & Minor.
Opportunities for growth
“ArcRoyal is well
known in Europe and has an established manufacturer customer base. We believe this acquisition gives us new opportunities for growth in the second- largest global healthcare market," he said.
Owens & Minor is a Fortune 500 company which is headquartered in Richmond, Virginia. It has annual revenue of $9 billion (€7 billion) and made $110.8 million (€87 million) in profit in 2013.
‘Highly complementary
’ The US
company described the acquisition as "highly complementary to the previously announced agreement to acquire Medical Action Industries, a US-based kitting company." The acquisition of an Irish operation will fit in well with its existing manufacturing business in Europe, it said.
“In addition, the combination of Medical Action Industries and ArcRoyal is expected to enhance Owens & Minor’s global sourcing opportunities,” Owens & Minor said.
Owens & Minor was founded in 1882 by two drug wholesalers. In the 1960s it entered the medical surgical supply business for the first time.
It acquired the Movianto Group, a healthcare third-party logistics provider, in 2012 as part of its continuing expansion into Europe. Movianto provides warehousing, transportation, and repackaging and relabelling of products from distribution centres in 11 European countries.
Owens & Minor was named by Forbes magazine in March as one of its 2014 world’s most admired companies.
