Artificial heart valve developer AorTech International has agreed to take over RUA Medical Devices in a £2.45 million deal brings together two world-leading Scottish life sciences companies.
The businesses are both pioneers in creating materials and devices suitable for implanting in the human body during operations with life-saving potential.
Dundee-based Aortech is behind Elast-Eon, biostable polymer from which heart valves can be built. RUA, based in Irvine, creates implantable textiles which has dozens of applications including cardiovascular tubes, incontinence systems, spinal disc replacements and mesh to repair hernia and organ prolapse.
RUA founder David Richmond, who is already a non-executive director of Aortech and sole shareholder of RUA, will become group chief executive. The expanded firm will be known as RUA Life Sciences plc.
AorTech chairman Bill Brown: "This deal is a perfect strategic fit for the company providing the people, processes and premises to allow our world class polymers to be converted into medical device products. We look forward to a closer working relationship with David Richmond and his talented team at RUA and are delighted that David has demonstrated his belief and confidence in the prospects for all of our Elast-Eon enabled devices by taking a substantial interest in the company."
The deal which values RUA at £2.45 million will involve £950,000 in cash with the rest in the form of 1,500,000 new Ordinary Shares at £1 each.
Aortech was founded in Lanarkshire in 2005 but is now based in Dundee's Technology Park. Walker Crips Stockbrokers is its largest shareholder at 21%. Last year Aortech reported revenue of £299,000. Utah firm Biomerics is licensed to build devices with Elas-Eon in the US.
RUA founder Richmond is from the family behind lace-making firm Flemings Laces, which dates back to 1881. He set up the medical textiles business in 2004 and it has a turnover of around £1.6 million. It has its HQ in Irvine and premises in Prestwick. He was advised on the deal by Glasgow law firm Macdonald Henderson.
