Mediq BV, which employs some 3,000 people across Europe, has bought H&R Healthcare, based in North Ferriby in East Yorkshire.
H&R was founded in 2006 by managing director Mike Hoskins and has become a leading UK distributor of healthcare products and a major supplier to the NHS.
As part of the Mediq deal, advised on by Andrew Jackson Solicitors, the Leicester-based manufacturing side of the business will be retained by Mr Hoskins. His new holding company Medalin Group includes Medalin Prosthetics, CUI International, Saphena Medical and Pretty Legs Consumer Hosiery. The value of the deal was not disclosed.
Mr Hoskins said: “Mediq and H&R Healthcare share a passion for delivering innovation to drive improved patient outcomes while simultaneously lowering the cost of delivering healthcare.
"This transaction allows us to grow our business, both in existing markets and new areas, and develop new innovations that will improve the health and well-being of patients."
Mr Hoskins also hailed his legal team, led by partner Martin Frost and associate Daniel Hammond, for delivering what he called "a complex reorganisation and cross-border deal in an extremely tight timeframe".
Mr Frost said: "It was a pleasure to assist Mike and his team on the sale of a key business within the NHS supply chain. Due to the existing structure of the company, it was necessary to undertake a demerger of the separate manufacturing business at pace whilst negotiating in parallel on the sale to Mediq of the distribution side of the business.
"This required us to draw upon specialist legal insight from across the firm, including banking and tax, whilst working very closely with H&R's accountants, bank and other professional advisers. It was a fantastic team effort."
A team from Smailes Goldie, led by corporate finance partner Mike Stocks, provided tax, accountancy and corporate finance advice to H&R. TBanking on the demerger was provided by HSBC.