A Medical Device Daily
Greatly expanding its presence in the medical market, industrial conglomerateMoog (E. Aurora, New York) reported completing the acquisition of the assets of Curlin Medical (Huntington Beach, California), a manufacturer of infusion pumps, plus the assets of two affiliated companies.
Moog paid $75 million for the acquisition, $63 million in cash and $12 million in the form of a 53-week note. The deal was first unveiled in February (Medical Device Daily, Feb. 15, 2006).
In recent years, Moog has supplied a variety of components to manufacturers of medical equipment. It says that sales of these products have grown significantly, and in FY06 will approach $40 million before considering the purchase of Curlin that will expand the company's participation in the medical market.
Curlin's sales in calendar 2005 were $16 million, and operating profits were $5.4 million. It said that sales in calendar 2006 have been running at almost twice that rate.
Infusion pumps provide controlled delivery of therapeutic drugs to the patient, either in a hospital or in an outpatient setting. The technology employed in infusion pumps has been advancing such that they now employ microprocessor controls and sophisticated software.
Moog said it believes that its background in the electronic control of fluid-flow metering devices combined with Curlin's reputation in the medical market will facilitate the continued growth of Moog's medical equipment sales. Curlin's products are distributed in North America by B. Braun Medical (Bethlehem, Pennsylvania). Moog said it expects to continue this relationship and will expand it.
In the remaining six months of its fiscal year ending Sept. 30, Moog said it expects that Curlin's profit contribution will offset financing costs and the amortization of purchase accounting intangibles.
“We're very excited about the addition of Curlin Medical to our company,“ said R. T. Brady, CEO and chairman of Moog. “We made an extensive search to find the right product to expand our participation in medical equipment. We believe that Curlin provides an outstanding platform to extend Moog's technology into the medical market through the B. Braun Medical distribution network, enabling us to continue growing this business.“
Moog manufactures precision control components and systems, its high-performance systems controlling military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industry machinery and medical equipment.
In other dealmaking:
• Zoll Medical (Chelmsford, Massachusetts), a manufacturer of resuscitation devices and related software solutions, reported completing the purchase of the assets of Lifecor (Pittsburgh), a manufacturer of wearable external defibrillator system.
Zoll acquired Lifecor's assets and business, assumed Lifecor's outstanding debt of about $5.8 million (plus an additional $3 million owed to Zoll), and also assumed certain stated liabilities of around $1.5 million. Additional consideration will be in the form of earn-out payments to Lifecor based upon future revenue growth of the acquired business over a five-year period.
Zoll on March 22 reported the exercise of a previously granted option to acquire the assets.
Zoll will operate the Lifecor business through its Zoll Lifecor subsidiary (Pittsburgh).
Besides manufacturing resuscitation products, Zoll develops software that automates the documentation and management of both clinical and non-clinical information. It sells its products in more than 140 countries.