A Diagnostics & Imaging Week
Siemens (Erlangen, Germany) said it has successfully completed the $7 billion acquisition of Dade Behring Holdings (Deerfield, Illinois).
The laboratory diagnostics company joins the existing business of Siemens Medical Solutions Diagnostics (Tarrytown, New York), a subsidiary of Siemens Medical Solutions USA (Malvern, Pennsylvania).
“The acquisition of Dade Behring, which holds a strong position in clinical chemistry, ideally complements our acquisitions of Diagnostic Products Corporation and Bayer Diagnostics,” explained Erich Reinhardt, member of the managing board of Siemens and president/CEO of Siemens Medical Solutions. “The implementation of integrated IT and clinical solutions from Siemens will help improve workflow efficiency throughout the healthcare enterprise, from admissions and administration, to the laboratory and the radiology department. This will enable our customers to increase the quality of patient care while simultaneously reducing costs,” he added.
The depositary for the tender offer advised Siemens that as of the expiration of the offer, about 72,989,428 shares of common stock of Dade had been validly tendered and not withdrawn, which, together with about 2,663,344 shares to be tendered, represents about 94% of the outstanding common stock of Dade.
“Becoming the leader in the laboratory diagnostics market enables Siemens to offer its customers a comprehensive portfolio of innovative solutions across the whole healthcare continuum — from prevention to diagnosis, to therapy and care,” said Erich Reinhardt, member of the managing board of Siemens and president/CEO of SMS. “There is no other company that can bring together the entire medical imaging, laboratory diagnostics and clinical IT value chain under one roof.”
Siemens is a global powerhouse in electrical engineering and electronics.
Dade Behring offers products, systems and services for the needs of clinical laboratories.
In other dealmaking activity:
• Alliance Imaging (Anaheim, California), a provider of diagnostic imaging services, said its affiliate, Alliance Oncology (also Anaheim), bought the assets of eight radiation therapy centers in Alabama, Arkansas, Mississippi and Missouri from Bethesda Resources, a subsidiary of Sonix (New York).
The price consists of about $36 million in cash and assumed debt. Annualized revenue from the acquisition is expected to total about $14 million, the company said. The acquisition was financed through internally generated funds, borrowings under credit facilities, and capital leases.
Alliance provides imaging and therapeutic services primarily to hospitals and other healthcare providers on a shared and full-time service basis, in addition to operating a growing number of fixed-site imaging centers. The company has 470 diagnostic imaging systems.
• Greatbatch (Clarence, New York) reported that its subsidiary, Electrochem Commercial Power, signed a definitive asset purchase agreement to acquire Engineered Assemblies Corp. (EAC; Teterboro, New Jersey) for about $12 million in cash. The company said it expects to close this transaction sometime this month.
EAC, with operations in Suzhou, China, is a provider of custom battery solutions and electronics integration focused on rechargeable battery systems.
The company said EAC complements and extends the array of markets Electrochem currently serves, such as military and aerospace, oceanographic and seismic surveying, and other industrial markets. In addition to these areas, EAC also supplies power solutions for external medical devices such as automated external defibrillators, infusion pumps, patient monitoring devices and MRI equipment.
The company anticipates that EAC will have annual sales in the range of $20 million to $23 million for 2007. Excluding one-time purchase accounting adjustments, such as in-process R&D charges, earnings are expected to be neutral in 2007 & 2008 and accretive thereafter.
Greatbatch is a developer of critical components used in medical devices for the cardiac rhythm management, neurostimulation, vascular and interventional radiology markets.
• Marshfield Clinic (Marshfield, Wisconsin) and Osmetech (London) reported an exclusive licensing agreement for a new warfarin biomarker discovered at Marshfield.
Osmetech, an international diagnostics business serving the molecular testing market, said it will develop a genetic test based on Marshfield’s research that will more accurately determine the initial level of warfarin a patient should be prescribed, the company said.
Researchers at Marshfield Clinic Research Foundation, led by Michael Caldwell, MD, PhD, are working to discover ways to more accurately predict dosage levels for warfarin, which is used as an anticoagulant, the company said.