A Medical Device Daily
Merit Medical Systems (South Jordan, Utah) reported that it has closed on its $20.6 million purchase of the assets of two companies, Alveolus (Charlotte, North Carolina) and Biosearch Medical Products (Somerville, New Jersey).
Merit, which manufacturers disposable medical devices, said it expects to hire an additional 30 to 40 people over the next 12 to 18 months because of the twin acquisitions.
Merit said last month it signed an agreement to acquire the assets of Alveolus for $19 million and would pay Biosearch $1.6 million for two products.
Alveolus is a producer of medical stents, plastic tubes that are placed inside blood vessels, canals or ducts to aid healing or relieve an obstruction.
"The acquisitions went very smoothly with no surprises," said Fred Lampropoulous, Merit's CEO. "Of course, we had been working on those transactions for four or five months before we announced them."
With the acquisitions now complete, Merit is moving forward on establishing a new business unit focused on the newly acquired products.
"We'll probably be adding six people right away," Lampropoulous said, noting those additional workers will be in addition to the 14 former Alveolus employees now working for Merit.
Merit's management in February estimated revenues from the Alveolus and Biosearch deals would contribute about $11.8 million for the company's current fiscal year that ends Dec. 31.
The company is projecting that revenues for its 2009 fiscal year will range between $260 million and $263 million. Earnings will be in the range of 77 cents to 79 cents per share.
"We're continuing to grow," Lampropoulous said. "We've added 75 people this past year, and we're still hiring."