International for an undisclosed sum believed to be in the region of quarter of a million dollars.

The move reunites the two companies once again under a single parent business after Staples Holdings Ltd went bust last year and over 300 shareholders lost $5 million.

The money from the sale of Atlantic Medical will go towards paying off the debts of the company. The original 300 investors in the company will not see any of the cash. Local businessman Fernance Perry, chairman of the Bermuda Broadcasting Company, stepped in and bought Staples Ltd last year through his company PJW Holdings Ltd and was rumoured to be interested in buying Atlantic Medical. Last month the liquidators of Staples Holdings, Deloitte and Touche completed their investigation into why the company failed, but found no wrongdoing on anybody's part.

They said in their report that the only asset worth anything that was still owned by Staples Holding was Atlantic Medical, which they valued at $230,000.

They said they would sell as soon as possible and there were three potential buyers for such a specialist medical supply company -- they also revealed that only PJW had made a matching offer. The deal was sealed last week and Atlantic Medical will now be relocating from its offices in Serpentine Road -- along with Staples Limited -- to PJW's building at 7 Pitt's Bay Rd, Pembroke.

Atlantic Medical sold Atlantic Medical is Bermuda's only dedicated medical device distributor and represents leading healthcare manufacturers such as Tyco International, Cobe/Gambro, Baxter Healthcare, Allegiance, Safeskin, Synthes, and 3M.

It also is a major supplier of medical products and equipment to King Edward Memorial Hospital for whom it provides warehousing, logistical and clinical support.

The business also supplies products and services to doctors, nursing homes and other health care markets in Bermuda.

Michael Johnson, president and Chief Executive Officer of Staples Ltd said: "It has always been our strategy to acquire this business. The company has always operated as an integral part of Staples, Ltd., and shares key operational and administrative synergies with the other businesses.

"In office products and healthcare, we have two key market opportunities and we intend to maintain our leadership position in both.

"The businesses will be focused on bringing unique value and specific expertise to our customers and to bringing the latest technologies and programmes to the Bermuda marketplace.'' Craig Bethune, the director of Atlantic Medical, said: "Atlantic Medical has established relationships with world class medical manufacturers.

"We are also very proud of our on-going relationship with King Edward VII Memorial Hospital. Our commitment to supporting educational initiatives at the hospital and within the Bermuda healthcare environment will remain a priority.''