Fenner expands medical sector reach with US buy

The polymer engineering specialist is building its medical business to tap into the rapidly-growing minimally invasive surgery market.

East Yorkshire-based Fenner, which is better known as a leading industrial conveyor belt maker, bought privately-owned MRI Medical for an undisclosed sum.

Fenner raised 36m through a share placing earlier this year to fund acquisitions, and chief executive Mark Abrahams said the deal used a "reasonable proportion" of this.

MRI, which stands for Manufacturing Research Incorporated, has annual revenues of around $10m (6.6m) and "growing profitability".

Founded by Robert Kelliher, it opened in 1986, and makes silicone devices such as catheters for global medical manufacturers, from

concept all the way to sterile products.

"People getting older and ill health amongst the aged actively links to the growth of this business," said Mr Abrahams.

"We are creating a platform of technology which we will be able to take to medical devices companies.

"The broader that is the more we are able to solve their problems in what is one of the most rapidly-growing parts of the medical industry. It's our aim to grow this (medical division) to be a substantial part of the group."

Based in Tucson, Arizona, MRI has a 47,000sq ft facility where it

designs and makes devices for urology, cardiology, haemodialysis, anaesthesiology, radiology, pediatrics and oncology.

It came with gross assets worth $2.6m.

MRI's products have few competitors and it has approval from the US

Food and Drug Administration (FDA).

Fenner entered the medical market with the purchase of Secant Medical as part of Prodesco in 2008.

This supplies medical device makers with textiles and polymers, primarily in the cardio-vascular and orthopaedic sectors.

"The two businesses fit very well together," said Mr Abrahams.

"It had to be niche, it had to be specialist, it had to have some particular know-how. Their technology is very specialist and well-protected because of the FDA approval."

Mr Abrahams said future acquisitions will be in medical and conveyor belting.

In medical, he will acquire companies which can broaden Fenner's skills and technology, also in the minimally invasive sphere.

In conveyor belt servicing, Mr Abrahams said Fenner will bolster its geographic reach with bolt-ons.