A Medical Device Daily
DaVita (El Segundo, California) reported that it has acquired 85% of the outstanding stock of HomeChoice Partners (Norfolk, Virginia) for about $65 million in cash. HomeChoice provides a range of infusion therapy services to patients with acute or chronic conditions that can be treated at home or at an ambulatory infusion suite.
HomeChoice has reported about $37 million in trailing 12-month revenue and currently serves more than 2,000 patients in Virginia, North Carolina, South Carolina and Georgia. The acquisition is expected to be EPS neutral in the first year.
The remaining 15% ownership interest will be retained by current HomeChoice senior management. This minority interest is subject to annual put and call options beginning four years from the date of closing.
“HomeChoice is a high-quality company in a large and fragmented healthcare segment. It has an experienced management team that will fit well with DaVita’s culture and our focus on outstanding clinical outcomes. We have modest initial growth plans, but as we learn the business we will evaluate the possibility for further investment in infusion services,” said Kent Thiry, CEO of DaVita.
In other dealmaking news:
• Medtronic (Minneapolis) and Kyphon (Sunnyvale, California) reported that the Federal Trade Commission and the U.S. Department of Justice, Antitrust Division have granted early termination of the antitrust waiting period in connection with their previously disclosed $3.9 billion merger agreement that was first disclosed in July (Medical Device Daily, July 30, 2007). Completion of the transaction, expected in 1Q08, remains subject to approvals by antitrust authorities in several other jurisdictions, the approval of Kyphon’s stockholders and other customary closing conditions.
As previously reported in Kyphon’s definitive proxy statement, the company is currently discussing a proposed consent decree with the FTC that would likely result in divestiture of most, and potentially all, of the Confidence assets that Kyphon proposed to acquire from Disc-O-Tech Medical Technologies (Herzliya, Israel).
Kyphon makes devices designed to restore and preserve spinal function and diagnose the source of low back pain using minimally invasive technologies.
• Air Liquide (Paris) reported that it has acquired Team One Technologies (Romeoville, Illinois), an independent producer and distributor of medical and specialty gases.
The acquisition was made on Aug. 31, 2007, by Air Liquide Healthcare America (Houston), the subsidiary of American Air Liquide Holdings responsible for its medical gas and healthcare related business in the U.S.
Air Liquide Healthcare America said it will own and operate the medical and specialty gas facility to support its strong growth initiatives in the Midwest medical gas market.
The newly acquired facility will also supply Air Liquide’s non-medical packaged and specialty gas business, with an additional geographic base for direct and distributor sales.