Chennai, Mar 25 (IANS): Continuing its acquisitive drive, the Murugappa group through its flagship company Tube Investments of India Ltd along with Premji Invest (through PI Opportunities Fund I Scheme II) has decided to acquire Lotus Surgicals Private Ltd.

According to Tube Investments, Lotus Surgicals with a turnover of Rs 116 crore is into manufacturing and supply of surgical sutures and other medical devices.

Tube Investments and Premji Invest will acquire Lotus Surgicals from India Medical Consumables Holdings Ltd, a Samara Capital entity, in an all cash deal.

While Tube Investments will pay up to Rs 232.81 crore for 67 per cent stake in Lotus Surgicals, Premji Invest will acquire the balance 33 per cent for Rs 115 crore.

The shares will be acquired by the two buyers subject to completion of certain conditions, Tube Investments said.

"The acquisition of Lotus marks our entry into the med-tech business. We believe that the Indian medical industry is expected to be one of the fastest growing sectors driven by both demand and supply side factors. We are delighted to join hands with Premji Invest.

"Our deep expertise in establishing and managing large scale manufacturing, coupled with Premji Invest's strong domain knowledge and investing experience, will enable Lotus to tap the immense potential in the med-tech business," said M.A.M. Arunachalam (also known as Arun Murugappan), Executive Chairman, Tube Investments.