Moog Inc., moving to expand its presence in the medical equipment business, agreed Monday to buy Curlin Medical LLC, a California company that makes infusion pumps, for $75 million.
The acquisition, which is expected to close by the end of March, adds a company that had $16 million in sales last year and had operating profits of $5.4 million.
Curlin is expected to have little impact on Moog's profits during the current fiscal year, with its earnings offseting financing costs and a substantial accounting-related write-off.
The acquisition is expected to add to Moog's profits beginning next year, said Robert T. Brady, Moog's chairman and chief executive officer.
Moog has been interested in expanding its business supplying components that are used in medical equipment, Brady said.
"We've made an extensive search to find a product platform which would allow us to become more of systems supplier," he said. "Curlin is the ideal answer. The product fits our technical capabilities. Sales are growing rapidly."
The acquisition adds to Moog's medical components business that already generates about $40 million in annual sales by supplying products such as slip rings that are used in CT scan machines and electric motors that are used in sleep apnea equipment.
Infusion pumps, which are used to provide a controlled flow of fluids to a patient, have become more sophisticated over the years and now commonly use computer chips and complex software. Moog officials hope that the Elma aerospace company's background in electronic controls for metering devices that monitor fluid flows can combine with Curlin's position in the medical equipment market to spur sales of all of Moog's medical device products.
Moog agreed to pay $63 million in cash for Curlin, which is based in Huntington Beach, Calif., and pay the remaining $12 million of the purchase price through a 53-week note.
Moog also said it was not changing its previous sales and earnings forecast, with profits expected to range between $1.81 and $1.89 per share and sales ranging between $1.22 billion and $1.24 billion.