A Medical Device Daily
Cardinal Health (Dublin, Ohio) reported the completion of the sale of its MedSystems (Wheeling, Illinois) business to Linden (Chicago), a healthcare and life sciences private equity firm.
Linden acquired MedSystems, a maker of enteral devices and surgical protection products, which joined Cardinal Health through the $1.5 billion acquisition of Viasys Healthcare (Conshohocken, Pennsylvania) last year (Medical Device Daily, May 15, 2007).
The company has been renamed Corpak MedSystems under Linden's ownership. Terms of the sale were not disclosed.
"Corpak MedSystems is an innovative and growing business, but it does not fit into the core focus of our clinical and medical products businesses," said Dave Schlotterbeck, vice chairman/CEO of clinical and medical products for Cardinal Health. "Linden has the expertise and experience to maximize value in mature health care businesses, and we believe MedSystems will have great opportunities to grow outside of the Cardinal Health portfolio."
Corpak MedSystems manufactures and globally markets a broad line of single-use feeding delivery devices and systems, primarily serving the hospital ICU, NICU and PICU markets. Its products include Corflo enteral feeding tubes, the Cortrak feeding tube placement system, Farrell Valve and Corflo Anti-IV Enteral Feeding safety connection products.
The company also produces smoke evacuation and surgical protection products through its Stackhouse division.
Thomas Kuhn, a Linden executive-in-residence, previously served as president of the Corpak MedSystems business for 15 years and has been appointed CEO of the business under Linden's ownership.
QLT (Vancouver, British Columbia) reported the closing of its previously disclosed agreement to sell the land and building comprising its corporate headquarters and the adjacent undeveloped parcel of land in Vancouver to Discovery Parks Holdings, in its capacity as trustee of Discovery Parks Trust and Discovery Parks Trust 2 for C$65.5 million.
In conjunction with the sale, QLT has entered into a five-year lease with Discovery Parks for about 30% of the facility and will provide two-year 6.5% interest-only second mortgage vendor financing in the amount of C$12 million.
"This marks the completion of another non-core asset transaction," said Bob Butchofsky, president/CEO of QLT. "We are very pleased with the progress we have made in our efforts to restructure the company. We believe the company is nicely positioned to deliver on the remainder of our principal goals, including the divestment of our remaining non-core asset Eligard and advancements in our clinical development programs, including obtaining data from our Phase 2 CORE study examining our punctal plug elution technology."
QLT's research and development efforts are focused on pharmaceutical products in the fields of ophthalmology and dermatology. In addition, it utilizes three technology platforms, — photodynamic therapy, Atrigel and punctal plugs with drugs — to create products such as Visudyne and Eligard and future product opportunities.
In other dealmaking news:
• U.S. HealthWorks Medical Group (Valencia, California), an operator of occupational healthcare centers, reported the acquisition of five medical and physical therapy centers in the greater San Diego area. Terms of the transaction were not disclosed.
The medical centers include American Occupational Medicine (AOM; Carlsbad) and Industrial Family Medical Care centers in Escondido and Murrieta. The physical therapy centers include Palomar Airport Physical Therapy (Carlsbad) and Murrieta Valley Physical Therapy and Hand Rehabilitation (Murrieta).
The medical centers in Escondido and Murrieta are full-service, walk-in centers offering both occupational medicine and urgent care services; the Carlsbad center is a dedicated occupational medicine facility. All three centers offer the full spectrum of occupational medicine needs, including injury and illness diagnosis and treatment, preventive services, pre-placement and post-offer exams and testing, physical therapy, return-to-work programs and orthopedic services.
• HealthSouth (Birmingham, Alabama) reported that it has finalized its previously disclosed acquisition of a 38-bed inpatient rehabilitation hospital in Midland, Texas. The hospital was owned by RehabCare Group of Midland. The hospital's operations will relocate to HealthSouth Rehabilitation Hospital of Midland/Odessa.
HealthSouth is a provider of inpatient rehabilitation services.
• LHC Group (Lafayette, Louisiana), one of the largest providers of home nursing services in the U.S., reported two separate acquisitions, both effective Sept. 1.
It has acquired 100% of the assets of Mountaineer Home Health (Charleston, West Virginia). The agency will operate under the name of Mountaineer HomeCare.
The company also has acquired the home health assets of the Jackson County Board of Health located in Ripley, West Virginia. The agency will operate under the name of Jackson County Home Health.
The combined primary service area of these agencies has an estimated total population of 600,000, with almost 16% over the age of 65. The combined net revenue for the most recent 12 months is about $1.3 million, and these acquisitions are not expected to add materially to earnings in 2008.