A Medical Device Daily
Roper Industries (Duluth, Georgia) reported that it has acquired medical products provider Civco Medical Instruments (Kalona, Iowa), from KRG Capital Partners for $120 million in cash.
Civco supplies diagnostic and therapeutic disposable products used in conjunction with ultrasound imaging for minimally invasive procedures primarily in urology, radiology and cardiology. Civco recently introduced the Civco Assist product line, a surgical patient platform used across several imaging modalities.
Civco joins Roper’s Imaging segment, with Roper saying that this enhances its focus on life science and medical applications.
The cash purchase price of $120 million represents about 8-1/2 times expected 2006 EBITDA. Civco is expected to generate about $40 million in 2006 revenues. Roper said that Civco is likely to add at least 5 cents of diluted earnings per share to 2006 performance.
Civco’s senior management team, under the leadership of Charles Klasson Jr., president, will continue in their positions under Roper’s ownership.
Klasson said, “Roper has a long track record of growing businesses like Civco, and our employees will benefit from being part of Roper.”
Founded in 1981, Civco’s product lines include biopsy systems, protective covers, ultrasound supplies, and positioning and stabilization systems. The company’s products are sold to more than 7,500 hospitals and clinics throughout the world. It also is a supplier to original equipment manufacturers such as Philips Medical Systems, GE Healthcare, Siemens Medical Solutions, Toshiba Medical Systems, Aloka, B-K Medical and SonoSite.
Roper Industries has more than $1 billion of annualized revenues.
Viasys Healthcare (Conshohocken, Pennsylvania) reported closing of its previously reported acquisition of Pulmonetic Systems (Minneapolis), a manufacturer of portable mechanical ventilators for home healthcare. Viasys acquired all of the outstanding stock of Pulmonetic in a merger with one of its subsidiaries for about $98 million, subject to a post-closing adjustment based upon the net value of Pulmonetic at closing.
Viasys said it funded the acquisition with existing cash balances and borrowings under its revolving credit facility.
Ed Pulwer, group president, Viasys Respiratory Care, said that the purchase enables Viasys “to enter into a new market segment. Home care mechanical ventilation is one of the fastest growing market segments in the global ventilation market. We expect that Pulmonetic Systems’ expertise in miniaturization will enhance the entire Viasys product portfolio.”
Jim Hickey, president and CEO of Pulmonetic, said that the two companies “share a commitment to excellence and innovation. This is a great fit for Pulmonetic Systems, and we believe the combined organization will become the hallmark for leadership in the mechanical ventilation industry.”
Randy Thurman, chairman, president and CEO, Viasys Healthcare, said the purchase “strategically extends Viasys’ product line into the home care market segment. The addition of Pulmonetic Systems to Viasys should accelerate our ability to address patient needs across the continuum of care by adding products and distribution to address home care and emergency medical services.”
Viasys is focused on respiratory, neurology, medical disposable and orthopedic products marketed under trademarks such as Avea, Bear, Bird, Jaeger, Nicolet, Sensor-medics and several others. Its businesses are conducted through its Respiratory Care, NeuroCare, MedSystems and Orthopedics units.
Pulmonetic’s flagship line is the LTV Series of ventilators.
In other dealmaking, Danaher (Washington) reported signing an agreement to acquire Pelton & Crane (P&C; Charlotte, North Carolina/Newberg, Oregon), a provider of dental equipment, for about $85 million in cash.
P&C makes treatment units, lights, sterilizers and cabinetry for dental professionals. With 2004 revenues of about $80 million, P&C is expected to become a part of Danaher’s medical technology platform. Danaher said it is expecting earnings-per-share accretion in 2005 to be “minimal” with the acquisition.
H. Lawrence Culp Jr., Danaher’s president and CEO, said that the purchase “brings another premier brand name to Danaher’s medical technology platform and strengthens our position in dental equipment. We look forward to working with the management and associates of Pelton & Crane as we build on the strong foundation they have established in this attractive growth market.”
Assuming the completion of various approvals, the deal is expected to close in the third quarter.
Danaher bills itself as a leading manufacturer of professional instrumentation, industrial technologies, and tools and components.