A Medical Device Daily

Theragenics (Buford, Georgia), a company serving the surgical products and prostate cancer treatment markets, reported that it completed its acquisition of NeedleTech Products (Attleboro, Massachusetts).

The agreement to acquire NeedleTech, a private manufacturer of specialty needles and related devices, for $47.8 million in cash was first disclosed by Theragenics earlier this month (Medical Device Daily, July 18, 2008).

Theragenics paid $47.8 million in cash, plus transaction costs, for NeedleTech. It retained the cash and investments held by NeedleTech, which totaled about $5 million as of June 30. The purchase price is subject to a working capital adjustment.

Theragenics financed $24.5 million of the purchase price with borrowings on its existing $40 million credit facility and paid the remainder from current cash and investment balances. The company said it expects the acquisition to be dilutive to earnings per share in 2008 and accretive in 2009. The results of operations of NeedleTech will be included in Theragenics' consolidated results as of July 28.

Genesis Capital was the company's financial advisor, and Powell Goldstein the legal advisor on this transaction.

In other dealmaking news:

Invitrogen (Carlsbad, California) and Applied Biosystems (Foster City, California) reported the expiration of the U.S. antitrust waiting period in connection with the companies' pending $6.7 billion merger which was first reported last month (MDD, June 13, 2008).

The expiration of the waiting period satisfies one of the conditions to the closing of the transaction. Invitrogen said it will soon be engaging with the European Commission for a similar review process.

Under the merger agreement, Invitrogen will acquire all of the outstanding stock of Applied Biosystems for $38 per share in a cash and stock transaction. This consideration represents a premium of 17% to Applied Biosystems' stock price on June 11.

The two companies reported that they have begun work on integration activities under the leadership of Mark Smedley, Invitrogen's global head of operations. Integration team members from both companies across all regions met July 20-22 to discuss proposed milestones and activities for the integration and further review proposed synergies.

"Integration teams comprising all functional areas of both companies are now in place and operating at full speed," Smedley said. "We have a clear integration model in place and we are well on track to start delivering on the potential of our new company as soon as the transaction closes."

Invitrogen provides life science technologies for disease research, drug discovery and commercial bioproduction.

Applied Biosystems develops instrument-based systems, consumables, software and services for academic research, the life science industry and commercial markets.

Riverside Partners (Boston) reported that it has partnered with management to acquire HealthDrive (Newton, Massachusetts), a provider of multi-specialty, on-site healthcare services to residents of extended care facilities.

HealthDrive's multi-modality business model brings dentistry, optometry, podiatry and audiology services directly to residents in more than 900 facilities in nine states. In addition to clinical services across multiple specialties, HealthDrive provides geriatric-specific products to its patients, including eyeglasses, hearing aids, dentures and podiatry products.

Riverside is a middle market private equity firm currently investing Riverside Fund III. The fund focuses on growth-oriented companies in the healthcare and technology industries.