Health Care Deal News: Spotlight on Medical Devices - March 2012

Although the Medical Device sector saw robust deal volume in February, the (revealed) prices were rather modest.  In the largest deal with a disclosed price, Linden, LLC, a Chicago-based private equity shop, has offered to acquire SeraCare Life Sciences (NASDAQ: SRLS), for $4.00 per share, or $80.4 million. Headquartered in Milford, Massachusetts, SRLS provides products and services to facilitate the discovery, development and production of human and animal diagnostics and therapeutics. This bid offers SRLS shareholders a 12% premium on the stock’s prior-day price. It is also valued at 1.8x revenue and 17.1x EBITDA. SRLS indicated earlier that it had been exploring strategic alternatives, including a sale, after it received an unsolicited buyout offer from MSMB Capital.

 

Merit Medical Systems (NASDAQ: MMSI) is enhancing its position in the interventional device market with the acquisition of Ostial Solutions, LLC of Kalamazoo, Michigan. Ostial sells the Ostial Pro Stent Positioning System, which facilitates precise stent positioning in coronary and renal aorto-ostial lesions. This acquisition gives MMSI a stent placement system that is compatible with many manufacturer’s stent platforms. Ostial also boasts higher margins than MMSI’s corporate average, so this deal will positively redound to MMSI’s financials. Under terms of the deal, valued at approximately $30.0 million, MMSI will pay $10.0 million at closing, $6.5 million within six months of closing and up to $13.5 million based on future product sales.

 

Israel’s Syneron Medical Ltd. (NASDAQ: ELOS) is making another deal in the esthetic medical market. It is buying Ultrashape, Ltd., an Israeli company that develops, manufactures and markets noninvasive technologies for fat cell destruction and body sculpting. The price is $12.0 million in cash. Ultrashape’s products are currently available in Europe, Canada, Latin America and Asia.

 

Greatbatch (NYSE: GB), a manufacturer of implantable medical devices, recently acquired NeuroNexus Technologies for $12.0 million. Based in Ann Arbor, Michigan, NeuroNexus is a firm that designs active implantable medical devices; it specializes in neural-interface technology, components and systems for neuroscience and clinical markets. This purchase strengthens GB’s design capacity and enlarges its presence in the neuroscience market. The acquired technologies will be utilized in cardiovascular and neuromodulation devices.

 

Theragenics Corp. (NYSE: TGX) recently acquired the prostate brachytherapy customer base of Core Oncology, based in Santa Barbara, California. TGX will pay an earnout of between $7.5 million and $10.5 million, based on revenue earned during the earnout period. This deal enlarges the buyer’s prostate brachytherapy business....Want to read more? Click here for a free trial to The Health Care M&A Monthly and download the current issue today