EFK Diagnostics (EFK), an AIM-listed manufacturer of healthcare equipment, has agreed to acquired the entire issued share capital of Stanbio Laboratory in a deal worth $25.5 million (£15.7 million).

EFK Diagnostics (EFK), an AIM-listed manufacturer of healthcare equipment, has agreed to acquired the entire issued share capital of Stanbio Laboratory in a deal worth $25.5 million (£15.7 million).

US-based Stanbio provides medical device distribution and manufacturing. Its three main product sale areas are chemical reagents, haemoglobin and test strips such as pregnancy tests.

The Texas-headquartered company reported sales of $16.4 million which led to profit before tax of $2.4 million.

Julian Baines, CEO of EFK, comments: ‘The acquisition of Stanbio is transformational for EFK. As previously promised we now have access to the US Point of Care market and in addition I am sure that our relationship with Alere will help build our reputation in this very important market.’

As well as the deal for Stanbio, EFK has also agreed to acquire Alere, a US-based diagnostics business.

Under the terms of the deal for Stanbio, $14 million is payable in cash on completion, with $5.5 million paid from the issue of 16,189,675 new ordinary shares. An additional $2 million in cash is payable if the EBITDA of Stanbio exceeds targets in each of the years ending 31 December in 2011 and 2012.

Finally, Stanbio will receive a subsequent $4 million in cash if the sales of the enlarged group exceed $50 million in any calendar year before 31 December 2015.

The acquisition for EFK is its first since its December purchase of Argutus Medical, a developer of biomarkers of organ injury, for a total £2.18 million.