Artificial hip and knee maker Smith & Nephew has bought a Russian distribution and manufacturing business, as it seeks further growth in emerging markets.
The medical manufacturer, which employs around 900 people in Yorkshire, will add the trauma and orthopaedics unit of DeOst to its operations, as well as manufacturer DC, a subsidiary of DeOst.
Smith & Nephew said the acquisition, which was agreed for an undisclosed sum, will boost its presence in the Russian market.
The deal involved Smith & Nephew adding 350 employees to its business.
Sanctions imposed on Russia by the United States and Europe in response to Moscow’s part in the Ukraine crisis have complicated life for some European firms doing business in Russia.
The acquisition brings Smith & Nephew “closer to customers through well-established commercial channels”, it said.
“DC’s local capability to manufacture mid-tier trauma products will enable us to reach more customers following recent changes relating to state tenders supporting Russian produced products,” the firm said.
DeOst has distributed Smith & Nephew’s products in Russia since 2009, it added.
Olivier Bohuon, chief executive of Smith & Nephew, said: “Smith & Nephew has grown its business in Russia since 2005.
“This investment, in-line with our strategy to build our platform in the emerging markets, significantly boosts our local presence and prospects.”
In April, Smith & Nephew reported a three per cent rise in first quarter revenues to $1.1bn (£710m), with emerging markets up 22 per cent.
Sales were also boosted by nine per cent revenue growth in its sports medicine joint repair unit, particularly in the US following its $1.7bn acquisition of ArthroCare in 2014.
Smith & Nephew was founded in Hull in 1856. Its advanced wound management division is a major employer in the city.