The US-based Argon Medical Devices Holdings Inc will be bought by Shandong Weigao Group Medical Polymer Co for $850 million
The decision comes as a part of the expansion plan the Hong Kong-based manufacturer has considered for its business development. $850 million is the cost that the Chinese investors are willing to pay for the company overseas. Argon Medical specializes in the production and marketing of single-use medical devices.
As declared by its representatives, the Weigao Group has introduced its plans to boost its portfolio of products by seeking new opportunities, mostly related to orthopedic medical devices and blood analysis technology. The decision was taken in order for the company to become an active contributor to the growth of sales from overseas markets.
After the transaction, Argon Medical will benefit the entire Chinese sales and marketing networking knowledge, as well as distribution channels all across China.
The $850 million acquisition was possible due to a joint venture between Weigao International and a privately-owned Cayman Island investment management company, with 90 per cent of the partnership’s stakes owned by Weigao.