Emergent Group (New York) has completed its pending merger with Medical Resources Management (MRM; Glendale, California). Emergent said it would now be able to bring advanced medical technologies to market "by using MRM's effective distribution channels with doctors, hospitals and health care facilities and roll out selected additional surgical products and services in a 'fee per procedure' model." MRM is a provider of medical equipment solutions in laser surgery, cryosurgery, brachytherapy and other capital-intensive medical technologies to more than 600 health care facilities and 1,400 physicians. The company also provides training and support services.
Interpore Cross International (Irvine, California) said it completed its previously announced acquisition of American Osteomedix (AOM), a private maker of minimally invasive medical devices. The AOM-CDO System, introduced in mid-2000, is a controlled delivery system designed to enhance the efficiency and safety of percutaneous surgery for placing materials into the bony structures of the body. The transaction has been accounted for as a purchase, and AOM has become a wholly owned subsidiary of Interpore Cross. The purchase price for all of the outstanding stock and options of AOM was about $8 million in cash and about 2.4 million shares of Interpore Cross common stock. Interpore Cross also has agreed to pay up to $5 million in additional cash consideration over the next five years if certain sales goals are met.
Gaymar Industries (Orchard Park, New York) has acquired Plexus Medical (San Dimas, California), a maker of specialty support surfaces. Terms of the sale were not disclosed. "Plexus Medical is an excellent addition to our growing line of pressure ulcer management products," said A. Leigh Harrington, Gaymar CEO. "The combined strength of complementary products, and sales and distribution infrastructure, will allow us to further expand our presence in alternate care and global markets." Plexus is a maker of specialty mattress products used in the prevention and treatment of pressure ulcers.
NZ Corporation (Phoenix, Arizona) has completed a merger agreement with Lipid Sciences (Pleasanton, California), a privately held medical technology company. NZ will issue some 15.94 million common shares to the stockholders of Lipid Sciences, and change its name to Lipid Sciences Inc. NZ shareholders will receive a right that, under certain circumstances, entitles them to additional shares during the two years post-merger. Lipid Sciences is developing patented technology that the company said has shown the ability to reverse atherosclerosis in animals and has the ability to inactivate lipid enveloped viruses, such as HIV, and Hepatitis B and C. The company said it expects to begin clinical trials testing the reversal of atherosclerosis in humans before the end of the year. NZ is a real estate investor and owner, and short-term commercial real estate lender.
OrthoLogic (Tempe, Arizona) said it has completed the sale of its Continuous Passive Motion (CPM) business to OrthoRehab in a cash-and-debt assumption deal. OrthoLogic received $12 million in cash at the closing, and OrthoRehab assumed some $2 million in liabilities. OrthoLogic also may earn up to an additional $2.5 million in cash, payable in August 2002, depending on OrthoRehab accomplishing certain sales objectives. Under terms of the deal, OrthoLogic retained about $10 million in accounts receivable related to the CPM business. The company said it will record a one-time loss on the sale of the CPM business of approximately $7 million during 2Q01, as well as a one-time charge of about $7 million related to costs associated with the final divestiture of the business. OrthoLogic said it now is focusing on its bone-stimulation business and Chrysalin program.
European electronics titan Royal Philips Electronics (Amsterdam, the Netherlands) said it has agreed to acquire Marconi's (London) Marconi Medical Systems (Highland Heights, Ohio) business for $1.1 billion, giving it immediate leadership in the field of computed tomography scanning and strengthening its position in magnetic resonance imaging and nuclear medicine. The purchase of Marconi Medical, formerly known as Picker International, will make Philips the world's second-largest manufacturer of medical diagnostic imaging equipment, the company said. Philips Medical Systems will have annual sales of EUR 5 billion. Its product porfolio will include X-ray equipment, ultrasound equipment, CT scanners, MRI systems, nuclear medicine systems, positron emissions tomography systems and patient monitoring devices. Philips Medical said that it "has basically completed" its program of acquisitions and will now focus on integration of its acquisitions for maximum benefit to shareholders. The transaction is expected to close in 4Q01 and is subject to customary regulatory approvals.
Thermo Electron (Waltham, Massachusetts) said that its board of directors has approved the spinoff of its 91%-owned Thermo Fibertek (also Waltham) subsidiary as a dividend to Thermo Electron shareholders. Immediately after this month's planned distribution, Thermo Electron will no longer own shares of Thermo Fibertek, and that company will be renamed Kadant.