A Medical Device Daily

The Polymer Technology Group (PTG; Berkeley, California), a biomaterials company, reported that it has agreed to be acquired by Royal DSM (Heerlen, the Netherlands), which makes synthetic fibers, engineering plastics and resins used in coatings. The acquisition is expected to close in 2Q08, subject to regulatory approvals.

The acquisition price, which was not disclosed, consists of an initial payment at closing and an earn-out due as future sales and profit targets are realized.

"Through the acquisition of PTG, DSM Biomedical [a division of Royal DSM] gains a leading global position in the fast-growing biomedical materials market," said Steve Hartig, president of DSM Biomedical. "Our collective technology in combination with our expanded geographical and customer base will help us to develop a unique portfolio of products for the medical device industry."

PTG said it expects to exceed $40 million in net sales in 2008, with above-average operating profit margin. It also said it expects more than 20% annual sales growth in the next three to five years, based on existing business and a pipeline of new products.

Bob Ward, one of the founders of PTG, will continue in his position as president/CEO of the newly named DSM Polymer Technology Group after the acquisition. Operations staff and all customer contacts for ordering, product support and contract R&D will also remain unchanged, DSM said.

PTG specializes in the development of specialty chemicals, polymers, and medical devices. The company has about 100 employees.

Signalife (Greenville, South Carolina) reported that its contract manufacturer, Ventrex (Ventura, California), acquired by the Hi-Tech Group (Anaheim, California) in September 2007, has been acquired by Parker Hannifin (Cleveland) as part of Parker Hannifin's entry into the device manufacturing industry.

"We have a great business relationship with HTG-Ventrex and are glad that they are now part of the Medical Systems Division of Parker's Seal Group," said Dr. Budimir Drakulic, Signalife's chief technology officer.

Signalife is a life sciences company focused on the monitoring, detection and prevention of disease through continuous biomedical signal monitoring. Signalife uses its signal technology to develop devices, therapies and/or technologies that are designed to simplify and reduce the costs of cardiovascular disease.

In other dealmaking news:

  • VitalCare Diabetes Treatment Centers (Carson City, Nevada) reported that it has signed a letter of intent to establish a joint-venture relationship with South Valley Inpulse Center (Draper, Utah), a diabetes treatment center.
    The center will be administering the FDA-approved Intracellular Activation Therapy (iCAT) treatment for Type 1 and Type 2 diabetes patients.
    CEO Jimmy McDougald said, "This is the part of our Midwest launch and we are excited to be offering iCAT therapy to diabetics in this region. We see this as an opportunity to work with an established team of healthcare professionals."
  • Lockheed Martin (Bethesda, Maryland) has entered into a definitive agreement to acquire Eagle Group International (Atlanta), which provides logistics, information technology, training and healthcare services to the U.S. Department of Defense.
    As part of the agreement, the parties have agreed to exclude from the transaction all obligations associated with Eagle Group's U.S. Department of Labor Potomac Job Corps contract. Other terms of the transaction were not disclosed.
    Eagle's revenue is generated mainly from work done for the U.S. Army. The transaction is subject to government approvals, and is expected to close in 2Q08.
  • National Surgical Hospitals (NSH; Chicago), an owner, operator and developer of surgical hospitals and surgery centers in partnership with local physicians, said it recently acquired a 49% interest in Coastal Bend Surgery Center (Corpus, Christi, Texas). Majority ownership in the facility, which was established 20 years ago, remains with 55 physician partners.
    The 26,000-square-foot multi-specialty surgery center, which opened in 2004 to replace the previous facility, contains six operating rooms, two treatment rooms, and completes about 12,000 cases per year.
    Related to this investment, NSH said it will build a 63,000-square-foot surgical hospital adjacent to the surgery center, focused on orthopedic and other specialties, consistent with its strategic focus. The new hospital, which will be the company's 15th surgical hospital nationwide and the fifth surgical hospital in Texas, will include four operating rooms and 33 beds and is expected to open in mid-2009.
  • HealthSouth (Birmingham) reported that it has entered into an agreement, through one of its wholly owned subsidiaries, to purchase the Rehabilitation Hospital of South Jersey (Vineland, New Jersey), a 34-bed inpatient rehabilitation hospital, from the Mediplex/Cumberland Rehabilitation Limited Partnership.
    This acquisition adds a third New Jersey rehabilitation hospital to HealthSouth's Northeast Region, the company said. HealthSouth currently operates HealthSouth Rehabilitation Hospital of New Jersey in Toms River and Tinton Falls Rehabilitation Hospital, a joint venture of HealthSouth and Monmouth Medical Center, in Tinton Falls.
    HealthSouth is a provider of inpatient rehabilitation services.