Arrow International (Reading, Pennsylvania) said it would sell its implantable drug infusion pump business, with the closing expected this month, saying the division's marketing and research investments are too costly. The company said that although implantable drug pumps represent a potentially promising future opportunity, funds needed to make it a significant contributor to future revenues do not match up well compared with other opportunities in Arrow's critical care and cardiac assist businesses, such as LionHeart and CorAide. Arrow said it would record a small loss on the sale in 2Q02, though it will be offset by an investment gain and will not be material to the overall second-quarter results.
The Cooper Companies (Lake Forest, California) said its CooperVision Unit completed the acquisition of Biocompatibles Eye Care, the contact lens business of Biocompatibles International (Farnham, UK), for about $97 million, plus an as-yet-undetermined amount for transaction costs. Cooper paid $34 million cash at the closing and issued notes to the selling shareholders totaling $62 million. Cooper is negotiating an expanded bank credit facility that it expects to complete in early May, with part of the proceeds to be used to repay the notes. Biocompatibles Eyecare is expected to add about $45 million to CooperVision's worldwide revenue in the eight months of 2002 following the acquisition and $75 million in 2003.
Jostra AG (Hirrligen, Germany), a supplier of medical technology for open-heart surgery, said it has acquired the main fields of business of competitor LifeStream International (The Woodlands, Texas). The operations of LifeStream's business sectors will be continued by Jostra without interruption and integrated into the Jostra-Bentley organization. LifeStream is a manufacturer of tubing sets for open-heart surgery, as well as oxygenators (artificial lungs), blood pumps, reservoirs and arterial filters. The products will be integrated into Jostra's product portfolio. Jostra will have production facilities in Germany, Puerto Rico, Sweden and Denmark and the U.S.
Mentor (Santa Barbara, California) has acquired the Sabre Sling product from privately held ProSurg (San Jose, California). Terms were not disclosed. The Sabre Sling is a surgically implanted device for the treatment of stress incontinence in women. Also known as a Self-Anchoring BioResorbable Sling, the device is the first incontinence device made of bioresorbable synthetic polymers. The sling has received FDA clearance for marketing, and Mentor said it will launch the product this spring.
Novametrix Medical Systems (Wallingford, Connecticut) said that a special meeting of company stockholders would be held April 9 to vote on its proposed acquisition by Respironics Holdings, a wholly owned subsidiary of Respironics (Pittsburgh, Pennsylvania), in a stock-for-stock deal valued at about $90 million. Novametrix manufactures cardiopulmonary monitors and sensors that noninvasively and continuously monitor cardiac output, respiratory mechanics, and levels of oxygen and carbon dioxide. Its products are used in neonatal, pediatric and adult intensive care units, respiratory care and emergency departments, operating rooms and patient transport, as well as in the home.
Synovis Interventional Solutions (IS), a wholly owned subsidiary of Bio-Vascular (St. Paul, Minnesota), has completed its acquisition of Emtech (Lino Lakes, Minnesota), a privately held company with manufacturing capabilities in injection molding, computer numerical control machining and tool building. The cash-and-stock transaction, valued at $2.15 million, includes the purchase of the Emtech business and the 20,000-square-foot building in which it is located. Synovis is moving some of its current interventional business operations into the new facility and will subsequently begin to manufacture components for several Bio-Vascular products. Synovis manufactures complex microwire forms that are used in interventional devices for cardiac rhythm management, neurostimulation and vascular procedures.
Thermo Electron (Waltham, Massachusetts) has offered to purchase CRS Robotics (Burlington, Ontario) via an all-cash offer of $42 million. The aggregate acquisition cost will be funded from Thermo Electron's existing cash holdings, the company said. CRS' board of directors has agreed to support the offer as in the best interests of its shareholders, and the directors and officers of CRS have agreed to tender all their shares during the offer period. The transaction is expected to be completed by late this month.
TriVirix International (Chapel Hill, North Carolina), a medical device contract manufacturer, said it is purchasing a Milaca, Minnesota-based manufacturing facility from Medtronic (Minneapolis, Minnesota). TriVirix said it will retain all 65 employees currently employed at the facility, and the company will serve as a supplier for Medtronic. Terms were not disclosed. The Milaca facility has manufactured a range of products for Medtronic's Cardiac Rhythm Management, Neurological, EP Systems and Cardiac Surgery businesses. These products include programmers that set therapeutic parameters for patients with implantable pacemakers, defibrillators and neurological devices; temporary external pacemakers; ablation systems and other products.