Us healthcare firm to buy kells company arcroyal
Arc Royal, the Kells-based medical kitting company, is to be acquired by Owens & Minor, a leading US-based healthcare logistics company, it has been announced.
This transaction will expand Owens & Minor's capabilities in the assembly of kits, packs and trays in the European healthcare market and is highly complementary to the previously announced agreement to acquire Medical Action Industries a US-based kitting company. Because ArcRoyal's primary customers are healthcare manufacturers, the transaction will further expand Owens & Minor's manufacturer service offering and will complement Owens & Minor's existing manufacturer-facing business in Europe, the company says.
In addition, the combination of Medical Action Industries and ArcRoyal is expected to enhance Owens & Minor's global sourcing opportunities.
'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 & chief executive officer of Owens & Minor.
'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.'
ArcRoyal, formerly DeRoyal, was originally established in 1992 and is now a market leader in delivering custom solutions for a range of global healthcare companies. Products and services include custom procedure trays and a diverse range of essential surgical products, which reach hundreds of hospitals across Europe through corporate partners, distributors and other agents.
ArcRoyal ships products to more than 30 countries. The transaction is subject to certain customary regulatory approvals and is expected to close in fourth quarter of 2014. Financial details of the transaction were not disclosed.
Owens & Minor provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. With logistics platforms strategically located in the United States and Europe, Owens & Minor serves markets where three quarters of global healthcare spending occurs. Owens & Minor's customers span the healthcare market from independent hospitals to large integrated healthcare networks, as well as group purchasing organizations, healthcare products manufacturers, and the federal government. A FORTUNE 500 company, Owens & Minor is headquartered in Richmond, Virginia, and has annualized revenues exceeding $9 billion.