Bindley Western Industries (Indianapolis, Indiana) said that a meeting of its shareholders to consider the proposed acquisition of the company by Cardinal Health (Dublin, Ohio) is scheduled for Feb. 14.The Hart-Scott-Rodino waiting period for the proposed stock-for-stock transaction ended early last month. Cardinal Health companies make products for patient care; develop drug-delivery technologies; distribute pharmaceuticals, medical-surgical and laboratory supplies; and offer consulting and other services. The company has more than 42,000 employees worldwide and annual revenues approaching $30 billion. Bindley Western provides an array of pharmaceutical and supply channel management products to customers including retail chain and independent pharmacies, supermarkets and mass retailers with their own pharmacies, hospitals, clinics, HMOs and managed care organizations.
Colorado MEDtech (Boulder, Colorado) reported that it has acquired certain assets of the ultrasound supplies group of ATL Ultrasound (Bothell, Washington) from Philips Medical Systems for about $4.3 million in cash. The transaction includes a five-year exclusive agreement to develop accessories for ATL Ultrasound systems. Additional terms were not disclosed.The ATL supplies group sells ultrasound imaging supplies, such as print media, transmission gels, covers and drapes. Annualized revenues associated with the acquired assets are about $8 million. Stephen Onody, president and CEO of Colorado MEDtech, said the ultrasound supplies business will complement his company's CIVCO Medical Instruments subsidiary (Kolona, Iowa), which makes specialized ultrasound imaging and minimally invasive surgical equipment. CIVCO offers product design, development, manufacturing, distribution and support to imaging OEMs.
Haemonetics (Braintree, Massachusetts) said it has agreed to purchase Alpha Therapeutics' plasma collection bottle plant assets in Compton, California, for $8.3 million. The disposable plastic bottles made at the plant are used by many of Haemonetics' customers as collection containers for blood plasma. As part of the transaction, the companies signed long-term, exclusive agreements for Haemonetics to supply Alpha with plasma collection bottles, as well as the 4% sodium citrate anticoagulant solution that is used in every plasma collection procedure. No other terms were disclosed. Alpha is the largest customer for Haemonetics' proprietary blood processing systems used in collecting plasma for fractionation.
Sulzer Medica (Winterthur, Switzerland) reported the acquisition of IntraTherapeutics (St. Paul, Minnesota) in a cash deal valued at $145 million. Sulzer said the acquisition will expand its vascular business activities into the fast-growing peripheral stent market, adding what it called "a strong technology platform with a proven management team" to its established cardiovascular business. Sulzer said the acquisition will enable it to further capitalize on the trend toward less-invasive treatment of cardiac and vascular diseases. The closing of the deal is subject to the approval of IntraTherapeutics' shareholders and U.S. regulatory clearance, both of which are expected by March. IntraTherapeutics is a privately owned company. Its line of products includes balloon-expandable non-coil stents and self-expandable coil and non-coil stents. Sulzer said IntraTherapeutics has a strong R&D pipeline and is in the process of introducing further products. The peripheral stent market generated sales of approximately $300 million in 1999 and is estimated to grow at an annual rate of more than 25%, Sulzer said.
Trimedyne (Irvine, California) has acquired Mobile Surgical Technologies (MST; Dallas, Texas), a provider of lasers and other high-tech equipment and a range of surgical services to hospitals and outpatient surgery centers in Texas, Arkansas, Oklahoma and Louisiana on a service contract basis. Trimedyne acquired 100% of the outstanding common stock of Mobile Surgical Technologies in exchange for 500,000 shares of Trimedyne common stock, valued at $1 million. Trimedyne said it has named William Schubert, former president of MST, as Trimedyne CEO and vice chairman. Shane Traveller, president and chief operating officer of Trimedyne, said, "Acquiring MST will provide us with a strong distribution outlet for our products. Instead of just selling lasers, we believe that renting them on a fee-per-case basis will increase our revenues and margins by participating in the fees generated from each laser surgical procedure." Trimedyne recently introduced a less-invasive laser device for spinal disk decompression and soon expects to introduce a laser for the fragmentation of urinary and biliary stones.
US Diagnostic (USD) and International Radiology Group (IRG) have entered into a letter of understanding related to a proposed merger. The letter indicates that USD would acquire 100% of the fully-diluted membership units of IRG for total consideration consisting of 49% of the issued shares of the combined entity, $5 million in cash, $5 million in a 5-year subordinated unsecured debenture and performance based warrants. Upon consummation of the merger, representatives of IRG will assume a majority of the board seats of the combined entity. The transaction is expected to close in 2Q01. US Diagnostic provides radiology services, with 47 fixed-site diagnostic imaging facilities in 12 states.