Baxter agrees takeover of Baxa Corporation

Baxter has agreed a deal to purchase Baxa Corporation, a developer of nutritional products and drug delivery systems.

A total upfront cash consideration of $380 million (232.9 million pounds) is to be paid under the terms of the transaction, which will give Baxter access to a range of new products and expand its global reach.

Baxa is based in Colorado with additional operations in the UK and Florida, developing technology that enhances the efficiency and safety of oral and intravenous dose preparation and delivery.

Its annual sales came to $150 million in 2010 and it is expected to achieve top-line growth in the coming years, which Baxter will now be able to capitalise upon.

Robert Davis, president of Baxter's medical products business, said: "Baxter will be able to provide a comprehensive solution to fulfil the majority of patients' nutritional requirements and increase efficiency in the pharmacy."

Last month, the company announced its second quarter financial report for 2011, during which it saw an 11 percent year-on-year growth in sales.