A three-man management buy-out team has acquired orthopaedics products manufacturer Promedics in what was described as a "multi-million-pound deal" and is moving the company's headquarters from Lancashire to Port Glasgow.

A three-man management buy-out team has acquired orthopaedics products manufacturer Promedics in what was described as a "multi-million-pound deal" and is moving the company's headquarters from Lancashire to Port Glasgow.

The Renfrewshire operation was formerly the main manufacturing and distribution site of the Blackburn-based company, a UK market leader in the supply of orthopaedics products to National Health Service trusts and to more than 30 countries.

David Baxendale, the former finance director in Blackburn, led the MBO with funding from Royal Bank of Scotland and has since become managing director. He was joined in the MBO by commercial director Andrew Padmore and operations director Ian McCormick.

The company, which was acquired from the Reed family who founded the business in 1982, will now trade under the new name of Promedics Orthopaedics.

While the buy-out price of the orthopaedic unit was not disclosed, Baxendale said: "We knew that the owner was selling the business, and we decided to match the offer, which was accepted."

Baxendale also said he had already transferred 10 staff from Blackburn to Port Glasgow, taking the Scottish headcount to 140, and that more staff would be added as the company expanded.

Promedics ADL, Reed's mobility business, will continue to operate in Blackburn, the company said.

Baxendale said that by creating a company based on the skills and know-how that exists within the division, "we can grow turnover and increase our market share".

The company has more than 5000 products, ranging from hand and leg braces to fracture management and spinal support products.

Baxendale also said he was confident of increasing Promedics' £7m turnover by introducing new products to the customer base in the UK and by expanding into new export markets abroad.