A Medical Device Daily

Helix Medical (Carpinteria, California), a manufacturer for the medical device and healthcare industries, reported the acquisition of MedVenture Technology (Louisville, Kentucky), a design, development, and manufacturing company. The company was purchased from Ampersand Capital Partners (Wellesley, Massachusetts), focused on middle market growth equity investments in healthcare.

This acquisition will enhance Helix Medical's ability to offer its customers a full spectrum of design and manufacturing services for innovative medical devices. “MedVenture will deepen our resources in product design, development, and engineering and enable Helix to offer more comprehensive product lifecycle management and be a stronger strategic partner to our customers,“ said Jorg Schneewind, president/CEO of Helix Medical. “While our global reach, with now 10 facilities around the world, will allow MedVenture to expand their services into new regions and tap into Helix's core strengths in thermoplastic and silicone molding and extrusion plus specialty catheters and hypotubes. Overall, the combined companies deliver a perfect synergy of complimentary capabilities powered by highly innovative people, advanced technology, and leading-edge processes.“

“The MedVenture team is excited to be a part of the long-term growth of Helix Medical and we plan to leverage the additional resources to continue our achievements in the design, development and manufacture of minimally invasive medical devices,“ said Kevin Bramer, CEO of MedVenture Technology. “Superior patient care begins with the newest technology and design strategies delivered with consistency and expertise. MedVenture's accomplished team, combined with Helix Medical's core manufacturing services, will allow us to continue to provide superior devices for first-rate patient care.“

In other dealmaking activity:

• IPC The Hospitalist Company (Hollywood, California), a national hospitalist physician group practice company, said that it has acquired Valley Hospital Doctors (McAllen, Texas). The acquisition of this acute care hospitalist practice represents a new market for IPC in south Texas.

R. Jeffrey Taylor, president/COO of IPC, said, “VHD has built an impressive regional hospitalist practice, and their reputation for professional service and performance is well deserved. Their high quality clinician talent, coupled with their commitment to align with local facilities, makes VHD an ideal fit for IPC. Supported by IPC's financial and administrative resources, VHD is well positioned for even greater success in the south Texas market.“

• Quest Diagnostics (Madison, New Jersey), said it signed a definitive agreement to purchase the clinical outreach laboratory business of UMass Memorial Medical Center (Worcester, Massachusetts).

The sale is the first step toward establishing a long-term relationship between the two organizations that could result in UMass Memorial taking a financial stake in a new entity that would develop and operate a state-of-the-art laboratory in Massachusetts in the future. The relationship will result in a number of benefits for patients, physicians, hospitals and health plans, including even higher quality service, expanded information connectivity options, and reduced laboratory testing costs.

“We believe our new relationship with Quest Diagnostics will bring together the best of both of our lab organizations and is exactly the innovation that is necessary to successfully navigate through the dynamic and changeable healthcare landscape for the benefit of all the patients and families in Massachusetts,“ said John O'Brien, president/CEO, UMass Memorial Health Care. “As we seek ways to provide even better and more affordable health care in an era of continued reimbursement and utilization pressures, combining the scientific capabilities, expert knowledge and focus on high-quality, patient-centered care of both Quest Diagnostics and UMass Memorial Laboratories is truly the best possible outcome for all our constituencies.“

Financial terms of the transaction, which is expected to be completed in the next 90 days, following the satisfaction of customary regulatory requirements, were not disclosed. Quest Diagnostics expects the transaction will contribute one percent to consolidated revenues, be neutral to earnings per share in 2013, and accretive to earnings per share in 2014.