Endocare (Austin, Texas) and Galil Medical (Yokneam, Israel) have agreed to merge in a stock-for-stock transaction resulting in Galil becoming a subsidiary of Endocare. The combined company will be focused on the promotion and development of cryoablation, a minimally invasive method to freeze and destroy cancerous tumors. Endocare stockholders will own 52% and Galil stockholders will own 48% of the outstanding stock of the combined company. The combination of Galil and Endocare will form a company with pro forma combined revenues and gross profit in the 12 months ended Sept. 30 of about $55.6 million and $39.1 million (70.3% of revenues), respectively. Endocare also reported that upon closing of the merger it will sell $16.25 million of newly issued shares of its common stock in a private placement, priced at $1 a share, to certain current institutional investors of the combined company. The deal is expected to close in 1Q09.

Ethicon (Somerville, New Jersey), a Johnson & Johnson (New Brunswick, New Jersey) company, reported that it has completed the previously disclosed divestiture of its Professional Wound Care business to One Equity Partners. Financial terms of the transaction are not being disclosed. Under the terms of the transaction, One Equity Partners has acquired the Professional Wound Care product portfolio, which contains such advanced wound care brands as Promogran Matrix Wound Dressing, Tielle Hydropolymer Dressing and Regranex (becaplermin) Gel 0.01%, a prescription treatment for lower extremity diabetic ulcers, as well as a portfolio of general wound care products. Also included in the transaction is the transfer of the R&D and manufacturing facility in Gargrave, UK. The Professional Wound Care business generated sales of about $270 million in 2007. The professional wound care product portfolio will be marketed and distributed by Systagenix Wound Management, a new company created by One Equity Partners. About 700 employees/contractors supporting the business will transfer to the new company.

Fujifilm Medical Systems (Stamford, Connecticut) reported the acquisition of Empiric Systems (Morrisville, North Carolina). Fujifilm has acquired 100% of Empiric's stock, making the vendor a wholly owned Fujifilm subsidiary. Financial terms were not disclosed.

Given Imaging (Yoqneam, Israel) reported that it has acquired the Bravo pH monitoring business for the diagnosis of gastroesophageal reflux disease (GERD) from Medtronic (Minneapolis) for $20 million. The only wireless, catheter-free pH test for GERD, the Bravo system uses a disposable capsule temporarily placed in the esophagus that measures pH levels and transmits the data to an external receiver. pH testing is considered the gold standard for diagnosing GERD. Given said it expected to incur a one-time charge of nearly $5 million in 4Q08 in connection with the acquisition.

Johnson & Johnson (J&J; New Brunswick, New Jersey) has agreed to acquire Mentor (Santa Barbara, California), a company that supplies medical products to the aesthetic market, for roughly $1.07 billion in a cash tender offer. It is expected to operate as a stand-alone business unit reporting through Ethicon. J&J agreed to buy all outstanding shares of Mentor at $31 a share.

Medtronic (Minneapolis) says it has added an innovative bone cement delivery system to its spine product portfolio with the acquisition of the assets and intellectual property of Pabban Development (Irvine, California). The deal provides Kyphon products, made by Medtronic, with a bone cement delivery system used in the treatment of vertebral compression fractures (VCFs) that allow physicians to be farther from the fluoroscope than with the current Medtronic offering, the company said.

Revolutions Medical (RevMed; Mount Pleasant, South Carolina) reported that it has completed its $9 million merger with Clear Image (Lexington, Massachusetts) and now owns 100% that company's proprietary assets. The company said this allows it to move ahead with the development and delivery of the platform for its MRI software technologies. RevMed's MRI software will be DICOM-compatible and should easily be adaptable to current picture archive and comminication systems.

Sorin Group (Milan, Italy) said it has agreed to buy the Clearglide endoscopic vessel harvesting product line from Datascope (Montvale, New Jersey). Financial terms were not disclosed. The transaction is contingent on the closing of the acquisition of Datascope by Getinge (Stockholm, Sweden), satisfaction of typical contractual conditions, and satisfaction of anti-trust procedures in the U.S. The vessel-harvesting product line will, upon closing, be integrated into Sorin's cardiopulmonary business unit.