Health Care Deal News: Spotlight on Medical Devices - May 2012
In the largest Medical Device deal for April, Hologic (NASDAQ: HOLX), a company focused on diagnostic and medical imaging systems, is acquiring Gen-Probe (NASDAQ: GPRO) for $3.72 billion. Based in San Diego, GPRO develops, manufactures and markets molecular diagnostic products and services to diagnose human diseases and screen human blood. On a trailing 12-month basis, it generated revenue of $576.0 million, EBITDA of $185.0 million and net income of $50.0 million. Under terms of the deal, HOLX is offering $82.75 per share in cash, which offers GPRO shareholders a 20% premium to the stock’s prior-day price. This combination, valued at 6.5x revenue, creates a leading diagnostic franchise focused on women’s health; it also increases cross-selling opportunities. Goldman Sachs and Perella Weinberg Partners provided financial advice to HOLX on this deal; Morgan Stanley provided GPRO with similar advice.
Corning (NYSE: GLW), the glass and ceramics manufacturer, is buying Discovery Labware from BD (NYSE: BDX) for $730.0 million in cash. Discovery Labware produces materials and instruments for the life sciences industry, and generates annual revenue of about $235.0 million. This acquisition, valued at 3.1x revenue, expands GLW’s life sciences unit, raising its revenue from that business by about 40%. It also expands the company’s global footprint in life sciences. Excluded from the deal is BDX’s advanced bioprocessing platform.
Haemonetics Corp. (NYSE: HAE), which designs, manufactures and markets automated systems for the collection, processing and surgical salvage of blood, announced two deals this month. In the larger of the two, it is buying the blood processing unit of Pall Corp. (NYSE: PLL) for up to $551.0 million. The target business includes PLL’s blood collection, filtration and processing product assets for use in transfusion. For the year ended July 31, 2011, this unit generated revenue of $210.0 million and EBITDA of $68,875,000. Under terms of the deal, HAE will pay $536.0 million in cash on closing, and pay $15.0 million contingent on certain conditions reached by 2016. As part of the transaction, HAE will acquire PLL’s manufacturing facilities in Corvina, California; Tijuana, Mexico; Ascoli, Italy; and a portion of its assets in Fajardo, Puerto Rico. This deal broadens HAE’s product offerings in the area of blood processing. JP Morgan Securities and Citibank are joint lead arrangers and joint bookrunners for the new term loans to finance this deal.
In its second transaction of the month, Haemonetics is acquiring Hemerus Medical, LLC, a company based in St. Paul, Minnesota that develops innovative technologies for the collection of whole blood, as well as the processing and storage of blood components. Hemerus has completed phase 3 clinical trials and submitted an NDA to the FDA for its SOLX whole blood collection system. It is believed that this proprietary system can significantly extend the shelf life of red blood cells. Under terms of the deal, valued at $27.0 million, the consideration is to be paid in several..............Want to read more? Click here for a free trial to The Health Care M&A Monthly and download the current issue today