HONG KONG, Sept 24 (Reuters) - China's Shandong Weigao Group Medical Polymer Co Ltd has agreed to acquire US-based and unlisted Argon Medical Devices Holdings Inc for $850 million, as part of its overseas expansion drive.
Weigao Group, mainly engaged in the production and sale of medical devices, orthopaedic and blood purification products, has been seeking opportunities to bolster its product portfolio, the company said in a filing to the Hong Kong Stock Exchange.
The company has also been looking to diversify its revenue stream to increase the contribution of sales from overseas markets, and expects "significant growth opportunities" for Argon Medical's products in China.
Privately-held Argon Medical makes and sells single-use speciality medical devices for procedures. Its product portfolio mainly consists of biopsy products, vascular clot management devices and drainage catheters, among others.
Weigao Group said Argon Medical would be able to benefit from the Chinese company's sales and marketing network and in particular its extensive hospital and distributor coverage to expand its business into smaller cities in China.
For the purpose of the acquisition, a joint venture has been formed by Weigao International, which is a wholly-owned unit of Weigao Group, and a Cayman Island-incorporated company that is owned by a private equity firm engaged in investment management.
Weigao International owns 90 percent of the joint venture, while the unnamed partner will hold the remaining stake. (Reporting by Sumeet Chatterjee; Editing by Keith Weir)