Zevex Inc. of Murray has been acquired as a wholly owned subsidiary of Downey Industries Inc., a Nevada-based publicly traded company.
The transaction involved the exchange of all of the issued and outstanding Zevex stock in exchange for standing Zevex stock in exchange for 24 million restricted shares of Downey common stock. Also during the shareholder's meeting, the Downey management was replaced by Zevex directors and the name of the holding company was changed to Zevex International Inc.
Zevex now has additional working capital to expand its manufacturing operations. It develops and manufactures electrical transformers, ultrasonic transducers and related signal processing instruments used in the aerospace, medical, industrial and military markets.
Current medical contracts include the manufacture of process controlers used in heart-lung machines for 3M, activity sensors used in pacemarkers manufactured by Siemens safety systems for infusion pumps manufactured by Eli Lilly and tools used for opthalmic survey by Smithkline Beckman.
Zevex officials said about 70 percent of their revenue is generated outside Utah, but they plan to broaden their local business base through expansion of their electrical transformer manufacturing operations.