A Medical Device Daily
Bracco Diagnostics reported completing its $241 million merger ($21 a share) with E-Z-EM (Lake Success, New York), a maker of contrast agents for gastrointestinal radiology, a deal first reported in October (Medical Device Daily, Oct. 31, 2007).
Bracco Diagnostics is the U.S. subsidiary of Bracco Imaging and part of the Bracco Group (both Milan, Italy). E-Z-EM has had a long association with Bracco Group, as it makes one of its oral imaging products. Bracco also serves as a distributor of E-Z-EM products in Italy.
At the time it was first disclosed, E-Z-EM said the transaction represented "the culmination of a comprehensive strategic alternatives process" by its board over the past year to identify the best alternative to create shareholder value
RBC Capital Markets served as financial advisor to E-Z-EM on the merger and the review of strategic alternatives, and provided a fairness opinion. Credit Suisse Securities and Evercore Partners served as financial advisors to Bracco Diagnostics.
McKesson (San Francisco) reported that it has acquired Rosebud Solutions (Ann Arbor, Michigan), a provider of software systems to track and manage instruments, endoscopes and tissue implants for surgical services, as well as medical crash carts and mobile equipment.
Financial terms were not disclosed
The Rosebud portfolio is designed to create improved workflow processes in the surgical, central services and sterile processing departments to reduce surgical delays and costs and save staff time.
"Better tracking and management of surgical instruments, tissues, implants and mobile medical equipment can improve operating room throughput, dramatically reduce new instrument purchases, and help improve patient safety by reducing delays on the operating table," said Chris Bauleke, VP and general manager of Resource Management solutions for McKesson Provider Technologies.
Rosebud software helps central services/sterile processing departments and surgical services electronically manage, track and reduce the waste for expensive surgical trays and instruments used in locations throughout the hospital. They also help hospitals manage regulatory requirements for tissue and implant management.
In other dealmaking news:
• Healthnostics (New York), a medical and biotech analytics information and technology company, said it has agreed to acquire a "significant interest" in Global Medical Direct (GMD; Lenexa, Kansas), a durable medical equipment provider specializing in direct-to-consumer diabetes supplies. GMD is forecast to generate $10 million in revenue by fiscal year end in June 2008.
The acquisition, to be paid for with Healthnostics restricted common stock, will constitute about 40% of the outstanding common stock on a fully diluted basis after acquisition completion. The company said this transaction will bring Healthnostics shareholders increased value by substantially improving the company's worth and offering a predictable revenue stream.
Alan Grofé, president of Healthnostics, will serve as CEO of GMD.
GMD's products include blood glucose meters, test strips and ancillary supplies, insulin pumps and supplies, diabetic shoes and orthopedic inserts and diabetes maintenance medications.
• LHC Group (Lafayette, Louisiana), a provider of post-acute healthcare services primarily in non-urban markets in the U.S., reported acquiring the assets of Home Care Connections and Rivercrest Home Health Care, consisting of four locations in Amarillo, Odessa, Uvalde and San Antonio, Texas.
The service area of this acquisition spans 64 counties in Texas, bringing LHC's total service area to 102 counties.
• HealthSouth (Birmingham, Alabama) reported that it has finalized the sale of its corporate campus, in Birmingham to Daniel Corp. (Birmingham), a real estate organization, for $43.5 million in cash and a 40% residual interest in the "Digital Hospital." HealthSouth also entered into a long-term lease arrangement with Daniel to maintain its headquarters on the property.
The sale includes the 103-acre corporate campus and all related buildings including a 200,000 square-foot corporate headquarters building, the Cahaba Grand Conference Center, and an incomplete 13-story building formerly called the "Digital Hospital."
The sale of the corporate campus is part of the strategic repositioning of HealthSouth, first reported in August 2006, to focus on inpatient rehabilitative and complementary services. It said that proceeds from this transaction will be used to pay down a portion of the company's long-term debt.
• Tenet Healthcare (Dallas) reported completing the previously disclosed sale of North Ridge Medical Center (Ft. Lauderdale, Florida), a 332-bed acute care hospital to Holy Cross Hospital (Miami) (MDD, Feb. 5, 2008). The sales proceeds of $20 million will be used for general corporate purposes.
With the sale of North Ridge Medical Center now complete, two acute care hospitals remain for sale: Encino-Tarzana Regional Medical Center Encino campus (Los Angeles) and Encino-Tarzana Regional Medical Center Tarzana campus (Los Angeles).
Discussions with potential buyers are ongoing, Tenet said.
Tenet owns and operates acute care hospitals and related ancillary healthcare businesses.