(Yicai Global) Sept. 25 -- Chinese disposable medical device-maker Shandong Weigao Group Medical Polymer Co. [HKG:1066] is looking to acquire US-based medical equipment company Argon Medical Devices Holdings Inc. for USD850 million (CNY5.6 billion) as part of an effort to diversify its product lines.

Weigao recently signed an acquisition agreement and plans to raise USD420 million through debt financing, it said in a press briefing on Sept. 24. The firm will pay the remaining USD430 million in cash.

Argon Medical Devices specializes in the development, manufacture and sales of medical equipment required for tumor and vascular surgeries. It is a leading producer of biopsy equipment, thrombus management devices and catheters. The enterprise's net assets stood at about USD118 million as of the end of last year.

The acquisition will enable Weigao to extend its product lines to include more clinical medical devices, and its board of directors believes that the new products have great development potential in the Chinese market.

Marketing of such products is primarily limited to the country's first-tier markets at present. The firm aims to introduce them to second- and third-tier cities and leverage business ties with hospitals and its extensive distribution network.

Weigao, founded in 2000 makes infusion sets, syringes and blood bags, among other medical products. Its clients include some 3,090 hospitals, 414 blood centers, 611 other medical institutions and 1,044 distributors.