Shares in Fenner edged up today after the Hull-based group announced the $29.9m cash acquisition of a US medical devices company.
The firm acquired the share capital of Charter from parent company Lydall Inc, a publicly traded company headquartered in Connecticut.
Charter will be integrated into Solesis Medical Technologies, part of Fenner’s Advanced Engineered Products division.
Fenner said the transaction will immediately enhance its earnings.
Nick Hobson, chief executive, said: “In common with all businesses in our AEP division, Charter applies its polymer technology to solving problems in performance-critical applications. “Charter has a strong, established business in blood transfusion and filtration markets and has exciting opportunities in the bio-processing and regenerative medicine markets, in which Fenner is already active and which are experiencing rapid growth.
“The acquisition of Charter, which will provide an attractive addition to the capabilities and offerings of Solesis, continues Fenner’s strategy to develop our medical business both organically and by acquisition.”
Charter manufactures specialty single-use assemblies and medical devices for the collection, processing, storage and filtration of biological and bioprocessing fluids.
Charter also produces bio-containers and fluid management sets that serve a range of life science applications including biopharmaceutical manufacturing, cell therapy and cryogenic storage.
Charter is based in Winston-Salem, North Carolina. It had sales of $19.6m, underlying core earnings of $3.3m and gross assets of $6.9m at the year ending December 2014.
Demand for Fenner’s conveyer belt business has been hit by weak commodity prices and the slowdown in the mining industry.
Shares rose 2.3 per cent in early trading 190.40p, giving Fenner a market capitalisation of £376.89m.