Q Holding, which is backed by investment firm 3i, has signed an agreement to acquire medical catheters manufacturer Degania Silicone.

Degania, which is being purchased from Viola Private Equity, Kibbutz Degania Bet and Israel Growth Investors, will be merged into its Qure Medical business unit.

The move will enable Q Holding to expand its medical device and component products, which can be used in healthcare applications.

Degania manufactures critical end products, which are used on a daily basis in healthcare settings in applications such as cardiology, general surgery and drug delivery.

The company has three brands, including Degania that develops and produces medical catheters for global medical device OEMs and Biometrix that provides catheter-related kits for hospitals and health care distributors. 

Arthesys is a cardiovascular and peripheral vascular catheter designer and manufacturer specializing in catheters for stent delivery.

With around 1,700 employees, Degania operates manufacturing facilities in Israel, India, France and Slovakia.

The combined company will provide a suite of development and manufacturing services, material technologies, analytical tools and industry expertise for the customers.

It will also offer complete product lifecycle management services, including assembly, packaging and 510K management.

Q Holding chief executive Randy Ross said: “We are delighted to have reached this agreement to purchase Degania. The businesses are highly complementary and the acquisition represents a critical milestone in diversifying and internationalizing the business.”

Degania CEO Rami Zajicek said: “We are proud of the company that our employees and investors have developed and we see joining forces with Q Holding as the natural next step for Degania to build upon this growth.”

Q Holding provides precision-molded elastomeric components, which can be used in a range of medical, pharmaceutical and electrical management applications.