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The numbers on Utah Medical Products' latest deal look clean on their face: Femcare Ltd., the UK subsidiary of Utah Medical Products (Nasdaq: UTMD), paid £3.6 million in cash for Orion Medical Supplies Ltd, a niche harm reduction device distributor that has operated in the United Kingdom and Europe since 2008.
UTMD projects Orion will add roughly $6 million to consolidated annual sales.
The case for the deal is overhead dilution and financial accretion; what complicates it is that UTMD openly acknowledges the products have no medical-use overlap with its existing device lines.
Orion assembles and distributes kits designed to reduce blood-borne infections, harmful drug litter, and overdose injuries and deaths in high-risk populations.
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