Medical instrument maker Frigz Medical Instruments (FMI) said Wednesday that its $2.3bn sale to the US company Frigaz was the largest sale of medical instrument trays in history.FMI said it expects the deal to boost its operating profit by $200m to $250m per annum in its fiscal first quarter.
Frigz also said it expected to increase its operating income by $150m to about $200 million per annums, which is an increase of nearly 80 per cent.
It said it had also achieved record sales growth in the US, particularly in the healthcare industry.
“We have achieved an unprecedented record number of sales in the first quarter of fiscal year 2018,” said Frigez chief executive officer Mark Waddell.
“In addition, we have delivered a significant improvement in the profitability of our business as a whole.”
The deal has led some analysts to predict a price cut of up to 40 per cent, but analysts with the bank of America Merrill Lynch said it was too early to say.
“This is a very significant acquisition, and one that we think is going to have a significant impact on the profitability,” said Morgan Stanley analyst Kevin Cawthon.
Frickz bought Frigiz in 2014.
Its US unit was founded in 2001 and employs more than 500 people in the Houston, Texas, area.