Deltex Medical (LON:DEMG) has established a joint venture in Canada with Provincial Medical Supplies (PMS), the first partnership it has set up with one of its international distributors.
The blood flow monitoring specialist said the move is designed to speed up growth and will mean margins pooled between the two companies instead being split as was the previous arrangement.
Deltex Medical will own 51% of Deltex Medical Canada and have a majority on the five-strong board. It acquired the customer list from PMS for £185,000 before setting up the venture.
Deltex can buy out the remaining 49% of Deltex Medical Canada for a price based on sales. The owners of PMW will get options over 500,000 shares in Deltex Medical.
Ewan Phillips, Deltex Medical’s chief executive, said: “The joint venture is expected to generate higher third party sales in 2014 and beyond than would have been achieved under the previous arrangements and a more immediate return on Deltex Medical investments in building our Canadian business."