A Medical Device Daily
PerkinElmer (Wellesley, Massachusetts), a broad-based developer of health science technologies, reported acquiring Elcos (Pfaffenhofen, Germany), a manufacturer of light-emitting diode (LED) technologies for both biomedical and industrial applications.
PerkinElmer will pay $15 million in cash and potentially make earn-out payments, based on Elos' future performance.
PerkinElmer said in a statement that the combination of Elcos' technologies and its own sales, application and support efforts "will provide significantly greater growth opportunities for the Elcos technology."
John Roush, president of PerkinElmer Optoelectronics, said, "Elcos has a successful track record of delivering high-performance LED solutions to premier OEMs, with the majority of their revenue in biomedical instrumentation." He noted that specialty LED systems are especially suited for applications in blood glucose monitoring and patient monitoring systems, as well as various industrial uses.
Joachim Sieg, founder and CEO of Elcos, who will serve as a consultant after completion of the deal, said: "We have always respected PerkinElmer's unique ability to combine technology expertise, operational excellence and an intimate understanding of customers' needs in order to deliver customized total solutions."
Elcos had 2004 revenue of $11.3 million, more than 60% coming from health science applications, including blood glucose monitoring and pulse oximetry.
PerkinElmer said the transaction is not expected to have any impact on its 2005 EPS. PerkinElmer is a global technology leader focused on three main businesses Life and Analytical Sciences, Optoelectronics and Fluid Sciences. It reports sales in more than 125 countries.
In other dealmaking activity:
LeMaitre Vascular (Burlington, Massachusetts) reported acquiring Endomed (Phoenix), a maker of endovascular stent grafts for the minimally invasive treatment of thoracic and abdominal aortic aneurysms (AAA). The acquisition was funded by debt provided by Brown Brothers Harriman, LeMaitre said, without disclosing specific financial terms.
Endomed products enable surgeons to treat AAAs through a small incision in the leg rather than through invasive open surgery of the thorax or abdomen.
The company's products are CE-marked and have been sold in Europe and other international markets since 2002. Endomed said it is one of only "a limited number" of companies with a CE-marked stent graft for the treatment of disease in the thoracic aorta. Endomed's aorto-uni-iliac stent graft is in a Phase I clinical trial in the U.S.
Its products are protected by a "comprehensive" portfolio of U.S. and foreign patents, Endomed said.
George LeMaitre, chairman, president and CEO of LeMaitre, said, "Vascular medicine is moving toward minimally invasive repair at a rapid pace. We are pleased to be part of the endovascular revolution."
Endomed was founded and is majority-owned by Edward Diethrich, MD, founder of the Arizona Heart Institute and chief of cardiovascular surgery at Arizona Heart Hospital.
LeMaitre, founded in 1983, makes vascular surgery devices, with manufacturing facilities in Burlington, St. Petersburg, Florida, and Brymbo, UK, and Frankfurt, Germany.
Medical Home Products (MPH; St. Petersburg, Florida), a provider of medical self-test kits and diabetic supplies, said it intends to acquire an existing Medicare diabetes durable medical equipment company, the firm unnamed.
Paul Mathis, president and CEO of MHP, said the acquisition "will allow us to move rapidly into the large and expanding Medicare/Medicaid market and provide expanded service for our existing clients. The completion of this acquisition will have a significant positive effect on our revenues for 2005 and should improve our return on investment for our shareholders."
The company estimates 42 million Americans are enrolled in the Medicare program, with $339 billion budgeted for the program in 2005.