This $100M Asset Deal Has Merit

Merit Medical Systems has agreed to pay $100 million for assets that BD (Becton, Dickinson and Company) and C.R. Bard need to sell in order to finalize their $24 billion merger. Included in the proposed asset sale are BD's Achieve programmable automatic biopsy system, Temno biopsy system, and Tru-Cut biopsy needles. These products are currently sold worldwide through a combination of a direct sales force and distribution partners. Additionally, Merit agreed to acquire Bard's Aspira pleural effusion drainage kits and the Aspira peritoneal drainage system. These systems are primarily sold in the United States. Merit said it plans to finance the acquisition through borrowings under its revolving credit facility. The asset purchase hinges on BD and Bard's merger closing. “We believe this is a perfect fit for Merit,” said Fred Lampropoulos, Merit's chairman and CEO. "These products are well established with an installed base and complement Merit’s CorVocet full core biopsy system and our recently-acquired bone biopsy products.” “There are also a number of markets in which Merit has direct representation that will be expanded to include the acquired products, as well as new markets which we plan to develop,” Lampropoulos said. “In summary, we believe this transaction will provide complementary high-margin products, increased use of our existing facilities, market expansion opportunities, accretive margins, profits and our existing sales force utilization.” Th...
Source: MDDI - Category: Medical Devices Authors: Tags: Medical Device Business Source Type: news