£275m buy gives Gyrus a US foothold

BRITISH keyhole surgery equipment maker Gyrus is boosting its US presence by buying specialist medical devices company American Cystoscope Makers for $497m (£275m).

Gyrus executive chairman Brian Steer expects the acquisition - the firm's biggest to date - to strengthen its competitive position in urology, give it more scale in the gynaecology market and provide a platform to expand into general surgery.

Most of the payment will be through the issue of new shares, and $164m of the US firm's debt is being paid off immediately with the help of a new $250m Gyrus debt facility.

Gyrus is paying $55m in cash and $278m in new shares worth 250p each, including $62m worth to a California private-equity outfit which controls the US firm.

Separately, drug development company ML Laboratories is buying privately owned Quadrant, which focuses on dry-powder drug inhalers, for about £46.7m.

ML is stumping up £27.2m of new shares at an issue price of 20.625p and £19.5m in cash, part-funded by a £26m placing and open offer of new shares at 19p each. ML shareholders will be offered one new share for every five they own.

The extra cash will be used for working capital and to help buy the 18.75% ML that does not own of respiratory subsidiary Innovata Biomed for £1.85m in cash and shares.