Creganna hopes Tactx takeover will boost revenue by up to 15pc
Ireland's largest medical device manufacturer, Creganna, expects that it will be able to grow revenue by at least 10 to 15pc per annum over the next few years after it disclosed yesterday that it acquired a California-headquartered firm oper- ating in the sector.
Creganna's roughly 500-strong workforce will be joined by more than 250 employed by Tactx Medical, which has operational bases in California, Minnesota, Massachusetts and Singapore.
The Creganna-Tactx group enjoyed a combined turnover of $110m (€76m) in 2009, and it will be among the top 10 global suppliers to the medical device industry. Tactx accounted for $40m (€27.7m) of those sales.
Helen Ryan, chief executive of Creganna, declined yesterday to reveal the price the company paid for Tactx, which was a majority-owned subsidiary of Indian firm Essel.
However, reports in India have suggested that Essel was hoping to generate the equivalent of about €3m in cash from the sale of the business.
The acquisition of Tactx, whose immediate holding company, Avalon Medical Services, is based in Singapore, was advised by Barclays Bank Ireland, HSBC's Irish arm and Bank of Ireland.
Ms Ryan said that Creganna, which was founded in 1979, had also used some of its own cash resources to finance the deal.
She added that the acquisition will also boost Creganna's manufacturing capacity by 50pc and described the purchase as "very significant".
The new group will now be known as Creganna-Tactx.
"We can see a lot of opportunities now and we can use this to grow organically," she said. "We're strongly positioned to go into strategic partnerships with our bigger customers."
Creganna designs and manufactures medical devices that are used in a range of treatments, and has a specialist competency related to high-end therapeutic catheters.
An unlimited company, Creganna does not have to file publicly available accounts. Its last available financial data showed it made a profit of €4.3m in 2007.
The firm is owned by its founders, including Ian Quinn and the New York-based private equity firm Altaris Capital Partners with a 29pc stake.