Femcare Ltd., a wholly owned subsidiary of Midvale-based Utah Medical Products Inc., has acquired Orion Medical Supplies Ltd.
Orion is a niche assembler and distributor, primarily in the United Kingdom and Europe, of Harm Reduction medical devices. Harm Reduction refers to programs and practices that aim to minimize negative health, social and legal impacts associated with drug use, drug policies and drug laws. Its kits incorporate devices that are designed to reduce the spread of blood-borne infections, harmful drug litter and overdose injuries and deaths, along with negative social impacts on, or caused by, drugs users, Utah Medical said.
A private UK company since 2008, Orion developed specialized products designed to eliminate blood-borne viruses and infections in a high-risk population that is not expected to decline. The former owners decided to retire.
Utah Medical said that although the devices are not synergistic from a medical use perspective with its other devices, they are well-accepted by the NHS and by other European country organizations where Femcare and UTMD distribute other proprietary medical devices.
Utah Medical said the main benefit of the acquisition is that Orion will provide a well-established and stable revenue stream, which should add about $6 million to UTMD’s current consolidated annual sales, which also have potential to expand geographically. UTMD will also take advantage of existing Femcare infrastructure and resources, which will substantially dilute overhead expenses as a percentage of UK sales.
The Orion business operations will be moved into Femcare’s existing facilities in Romsey, United Kingdom, as soon as practical after a transition period.
“This is the kind of acquisition that makes sense for UTMD: a stable, profitable and affordable business with well-accepted products, in a specialized market niche with some growth potential, where distribution to customers can be leveraged,” said Kevin Cornwell, UTMD’s CEO.
