A Medical Device Daily
Moog (East Aurora, New York) reported that it has completed the acquisition of medical device manufacturer Zevex International (Salt Lake City) in a deal, first disclosed this past January (Medical Device Daily, Jan. 17, 2007), valued at $83.8 million.
Zevex shareholders will receive $13 in cash for each share of Zevex common stock, with Zevex now a Moog subsidiary. The company said it used its revolving credit facility to finance the transaction.
Zevex is now part of Moog's Medical Devices Segment and will continue normal operations through its two primary divisions: Applied Technology and Therapeutics.
David McNally, now general manager of the Moog subsidiary — and formerly Zevex's president/CEO — said, "We are pleased to announce the closing of our acquisition by Moog. We believe that the combination of Zevex with Moog's existing medical devices business increases our growth potential and will build a robust Medical Devices Segment within Moog."
Zevex, employing about 180, manufacturers ambulatory pumps, stationary pumps, and disposable sets used in the delivery of enteral nutrition for hospital, nursing home, neonatal and patient home use. In addition, it manufactures surgical tools and sensors and provides engineered solutions for the medical marketplace.
Moog said that the acquisition expands its participation in the medical devices market. It said that in the fiscal year ending Sept. 29, 2007, sales in its Medical Devices segment will approach $65 million, including $25 million in Zevex sales over the next six months.
Due to first-year purchase accounting adjustments, the acquisition will be neutral to Moog's EPS for FY07.
"We're excited about having Zevex become part of our company," said
Robert Brady, CEO and chairman of Moog. "We believe that Zevex brings an outstanding combination of personnel and products that further extend Moog's capabilities in the medical market."
As a result of the merger, Zevex requested that The Nasdaq delist its common shares and terminate trading of the shares. Zevex also intends to deregister its common stock from Securities and Exchange Commission requirements.
Moog is a manufacturer and integrator of precision control components and systems for control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industry machinery, and medical equipment.
Cytyc (Marlbourough, Massachusetts) reported the expiration of the initial offering period of the tender offer by its wholly owned subsidiary Augusta Medical for all outstanding shares of common stock of Adeza Biomedical (Sunnyvale, California).
The initial offering period for the $452 million deal, that was first disclosed last month (Medical Device Daily, Feb. 13, 2007), expired, as scheduled on March 16.
Thus far, a total of about 15,347,000 Adeza shares were validly tendered to Augusta and not withdrawn, representing about 87.4% of the outstanding common stock of Adeza.
Cytyc has commenced a subsequent offering period for all remaining shares of Adeza common stock to permit stockholders who have not yet tendered their shares the opportunity to do so. That runs through March 30, unless further extended.
As a result of the merger, Adeza will become a wholly owned subsidiary of Cytyc, a diversified diagnostic and medical device company. Cytyc's products cover a range of cancer and women's health applications, including cervical cancer screening, treatment of excessive menstrual bleeding, radiation treatment of early-stage breast cancer, and radiation treatment of patients with malignant brain tumors.
"We believe the acquisition of Adiana provides another terrific growth opportunity and we are very excited to expand our surgical product offerings into reproductive health," said John McDonough, president of Cytyc Development. "We believe this acquisition is an excellent strategic fit for Cytyc as it complements our NovaSure Endometrial Ablation System and it allows us to leverage our formidable worldwide sales force, which is focused on delivering clinical solutions to the OB/GYN community."
Cytyc, manufactures, diagnostic and surgical products in the women's healthcare sector.
In other deal news: Small Bone Innovations (SBI; New York) reported seven new acquisitions and licensing agreements, expanding its portfolio of products addressing the lower limb sector. The money paid in these deals was not disclosed.
The seven transactions: a suite of fixation devices for small bones from Euromedic International Group (Budapest, Hungary); intellectual property for a reverse great toe prosthesis designed and developed by Dr. Shane Hollawell; intellectual property and related assets for a hemi MTP joint designed and developed by Dr. Charles Sorbie and Gerald Saunders; a licensing agreement for the ROTO-glide three part anatomical great toe system designed and developed by Dr. Hakon Kofoed and Implants International; a licensing agreement for an ankle distraction system using external fixation designed and developed by Dr. S. Robert Rozbruch; a licensing agreement for variable angle-locking plate and screw technology designed and developed by Profesor D. F. Wolter and LITOS (Hamburg, Germany); a licensing agreement for SBvF small Bbone void filler (β-TCP) designed and developed by Therics (Akron, Ohio).
After directing the majority of its acquisition activity and development towards the upper limbs in 2006, SBi said it has announced 2007 as its "Year of the Lower Limb" and expects to be "a significant and rapidly growing force in treatment of the anatomy of the lower limb."