A Dublin-based businessman will realise more than €18.5 million after selling his medical devices company to United Drug.

Mr Michael Kinsella owns some 95 per cent of IntraVeno Healthcare, an employer of 70 people, which was sold yesterday for some €19.5 million.

Two directors - Mr Dara Murphy and Mr Declan Devine - will share some €980,000 of the proceeds.

According to Companies Office records, each was allocated some 2.5 per cent of the company's shares just over two years ago.

The company distributes and sells a range of non-drug surgical, medical and pharmaceutical products and devices.

Based in Tallaght, west Dublin, it also has a Northern Ireland operation. Certain parts of the business trade under the IntraPharma name.

The business made a pre-tax profit in 2001 of €1.86 million and had net assets of €4.69 million at the end of last year, United Drug said.

As a condition of the deal, Mr Kinsella and other senior management figures will remain with the company for three years.

Mr Kinsella (51) was not available for comment yesterday. His wife, Ms Helen Browne, a pharmacist, is also a director and has a small shareholding.

From Kilkenny and with a background in sales and marketing, Mr Kinsella established the Intraveno Healthcare business 22 years ago.

United Drug made upfront payment yesterday of €9.975 million in cash and interest-bearing loan-notes for IntraVeno's holding company, Oremelt Ltd.

It also transferred an additional €3.325 million in United Drug shares to the vendors.

An additional consideration of up to €6.2 million is dependent on the achievement of certain profit targets by the end of next year.

Some 75 per cent of the earn-out is payable in cash or loans notes with the remainder payable in United Drug stock.

United Drug shares closed 15 cents stronger at €13.65 yesterday on the Dublin Stock Exchange. Volumes were thin.

The company's latest acquisition follows a €16 million share placing in February and the purchase for £8 million sterling (€12.55 million) of a British company, New Splint Ltd. The Hampshire-based company makes orthopaedic implants and surgical instruments.

The United Drug chief executive, Mr Liam FitzGerald, said: "This is the most significant of all the deals we have done on the island of Ireland. There's no conflict of interest with our existing operation."

The deal was in keeping with the company's strategy, he said."The acquisition of IntraVeno is further evidence of our strategy of expanding our presence in medical and scientific distribution as a key element of the growth and development of our contract distribution outsourcing division," he added.

With some 1,500 staff in Ireland and Britain and a market capitalisation of about €400 million, the company's other divisions are in contract sales outsourcing and pharma wholesale.