A Medical Device Daily
Wright Medical Group (Arlington, Tennessee) reported that it has completed its previously disclosed acquisition of Inbone Technologies (Berkeley, California), for an initial cash payment of $24 million, guaranteed minimum future payments of $3.7 million and potential additional cash payments based upon the future operational and financial performance of the company (Medical Device Daily, March 11, 2008).
The Inbone acquisition marks the seventh business development initiative targeted for the foot-and-ankle surgery market that Wright has executed in the past 12 months, it said. The company added that it believes the combination of these business development initiatives, internal new product development and sales force specialization "has positioned Wright as a leader in this rapidly expanding market."
Inbone is the manufacturer of both the Inbone Total Ankle System and the Inbone Intra-osseous Fusion Rod and Plate System. With the acquisition now complete, Wright has initiated the distribution of the Inbone product line through its U.S. distribution network. Select international markets will follow upon receipt of required regulatory clearances, it added.
The Inbone product line joins the company's growing portfolio of foot and ankle products, including the Swanson line of silicone digit implants; the Charlotte line of stainless-steel plates and screws; the Darco line of titanium locked plates and headed screws; the Sidekick line of external fixators; the AM Surgical endoscopic tissue release systems; the Bioarch subtalar implant; as well as biologics including the Graftjacket regenerative tissue matrix; Cancello-Pure bone wedges; and Allomatrix DBM and Pro-Dense injectable synthetic bone graft substitute.
Wright said this acquisition is expected to be accretive to its earnings in 2009 and thereafter and is expected to be 3 cents dilutive to 2008 adjusted earnings per share.
In other dealmaking news:
• MedCath (Charlotte, North Carolina) has acquired a 27.4% interest in a joint venture, Southwest Arizona Heart and Vascular Center (Yuma, Arizona), providing cardiac catheterization lab services to Yuma Regional Medical Center under a management and service agreement. The j-v will be owned by MedCath and Heart, Lung and Vascular Center of Yuma. The facility is located on the campus of Yuma Regional Medical Center.
MedCath will assume management of the j-v and work with the physicians and hospital to add additional capacity to the facility and additional services to the community.
MedCath acquired its 27.4% interest for $8.5 million and anticipates that the j-v will add about 5 cents in diluted EPS annually.
MedCath is focused on high-acuity services, the diagnosis and treatment of cardiovascular disease being a primary offering. MedCath owns interests in and operates 10 hospitals with 663 licensed beds, and its subsidiary MedCath Partners provide services in diagnostic and therapeutic facilities in various states.
• DuPont (Wilmington, Delaware) said it will acquire the industrial apparel line of the Scientific and Production Products business of Cardinal Health (Dublin, Ohio), which manufactures products used in clean rooms and other controlled environments. Terms were not disclosed.
The agreement includes the transfer of the existing inventory and intellectual property related to industrial garments including the Micro-Clean brand. It will allow
DuPont, which manufactures fabrics and garments for industrial safety and emergency response, said the buy will enable it to provide a broader offering.
Cardinal will retain its hospital apparel product line along with its industrial gloves offering.
• Medical Properties Trust (MPT; Birmingham, Alabama) reported that it has completed the acquisition of seven properties for about $138 million in the previously disclosed healthcare facility portfolio that the company is purchasing from HCP (Long Beach, California) (MDD, March 17, 2008).
The facilities that Medical Properties Trust acquired are Cleveland Regional Medical (Cleveland, Texas); Chesterfield General Hospital (Cheraw, South Carolina); Marlboro Park Hospital (Bennettsville, South Carolina); Cornerstone Hospital of Houston Clear Lake (Webster, Texas); Cornerstone Hospital of Bossier City (Bossier City, Louisiana); Cornerstone Hospital of Southeast Arizona (Tucson); and Mountain View Hospital (Idaho Falls, Idaho).
MPT said it expects to complete the acquisition of substantially all of the remainder of the properties in the portfolio in 2Q08 for an aggregate additional purchase price of about $220 million.
MPT is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities.
• Pediatrix Medical Group (Fort Lauderdale, Florida) said that it has completed the acquisition of Children's Heart Center (El Paso, Texas), a pediatric cardiology physician practice.
Children's Heart Center was founded in 1999 by John Plowden, MD, who provides outpatient pediatric cardiology services from a single office location and also treats patients at five El Paso-area hospitals. He joined Pediatrix to help his practice enhance patient services within the metropolitan area.
Pediatrix's national group of pediatric cardiologists now provides patient services in 14 metropolitan areas across the country. Pediatrix completed the El Paso acquisition for cash, and the practice is expected to contribute immediately to earnings per share.
Pediatrix is a provider of neonatal, maternal-fetal and pediatric physician subspecialty services and recently expanded to include anesthesiology services. .
• Medical Mutual of Ohio (Cleveland) reported the acquisition of Premier Health Systems (PHS; Columbia, South Carolina), a statewide preferred provider organization (PPO) network.
The acquisition expands Medical Mutual's presence in South Carolina after the purchase last year of Carolina Care Plan, a Columbia-based health plan that serves about 55,000 members.
Medical Mutual of Ohio is one of the oldest and largest health insurance companies based in Ohio.