Top Mergers and Acquisitions in the Medical Device Industry in 2017
iData Research
2017 was the year of several high-profile mergers and acquisitions in the medical device industry
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2017 was the year of several high-profile mergers and acquisitions in the medical device industry. This consolidation of power and market share between two or more organizations has affected many companies. These are the deals that have shaped the medical device landscape and will impact it for years to come. Here is a list of the most notable company mergers this year. If you are interested in learning about the following markets, please contact us at idataresearch.com.

Becton Dickinson Acquires C.R. Bard

The U.S.’s Federal Trade Commission has given Becton Dickinson the green light to go through with its C. R. Bard acquisition, as long as it divests of its soft-tissue core needle biopsy product line and Bard’s Aspira tech.

“FTC approval brings us one step closer to full regulatory clearance of the Bard acquisition,” BD chairman & CEO Vincent Forlenza said in prepared remarks. “We currently expect that the Bard acquisition will close in December, pending approval by the Ministry of Commerce of the People’s Republic of China (MOFCOM) and the satisfaction of customary closing conditions.”

BD added another extension onto its tender offer for up to $1.1 billion in outstanding Bard notes. BD first announced the $317-per-share deal in April and it won conditional approval in the EU in October.

ICU Medical Completes the Acquisition of Hospira Infusion Systems from Pfizer

ICU Medical Inc. announced that it has completed its acquisition of the Hospira Infusion Systems business from Pfizer. The Hospira Infusion Systems business includes IV pumps, solutions, and devices that, when combined with the company’s existing businesses, makes ICU Medical one of the world’s leading pure-play infusion therapy companies.

“We are pleased that Hospira Infusion Systems is now part of ICU Medical and welcome our new Hospira colleagues to the ICU team. We look forward to working together to continue providing quality, innovation and value to our clinical customers worldwide,” said Vivek Jain, chairman and chief executive officer at ICU Medical.

The Hospira Infusion Systems acquisition complements ICU Medical’s existing business to create a company with a complete IV therapy product portfolio from solutions to pumps to non-dedicated infusion sets. In addition, the acquisition gives ICU Medical a significantly enhanced global footprint and platform for continued competitiveness and long-term growth. With an integrated product offering, the company now holds industry-leading positions in key segments and has access to the full US infusion marketplace with a compelling product portfolio.

Hologic Completes Acquisition of Cynosure

Hologic, Inc. announced that it has completed the acquisition of Cynosure, Inc., a leader in medical aesthetics systems and technologies, for $66 per share in cash.

“We are pleased to complete our acquisition of Cynosure, and look forward to working with Michael Davin and the entire Cynosure team to achieve even greater success in the large, rapidly growing medical aesthetics market,” said Steve MacMillan, Hologic’s Chairman, President and Chief Executive Officer. “Acquiring Cynosure, combined with divesting our blood screening business, fundamentally reshapes our business portfolio and makes us a stronger, faster-growing company.”

The tender offer by a subsidiary of Hologic for all the outstanding shares of Cynosure Class A Common Stock expired as scheduled at midnight ET on March 21, 2017. A total of 17,047,830 shares of Cynosure Class A Common Stock, representing approximately 70.6% of Cynosure’s outstanding shares, were validly tendered into and not validly withdrawn from the tender offer. As a result, Hologic and its subsidiary have accepted for payment and will promptly pay for all shares that were validly tendered and not validly withdrawn.

Cardinal Health Completes Acquisition of Medtronic’s Patient Recovery Business

Cardinal Health recently announced that it has completed the acquisition of Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business for $6.1 billion. The acquisition was funded with a combination of $4.5 billion in new senior unsecured notes, existing cash and borrowings under our existing credit arrangements.

“This business provides our customers with more product offerings and includes some well-established brands that fit naturally within our portfolio and are complementary to our current medical products business. We know these products and many of the employees well, and have seen that our team members share a common commitment to quality, customer service and the patients who we all ultimately serve,” said George Barrett, chairman and CEO of Cardinal Health. “We are extremely excited about welcoming our new colleagues from around the world to Cardinal Health.”

The Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business encompasses 23 product categories across multiple market sites of care, including numerous industry-leading brands, such as Curity, Kendall, Dover, Argyle and Kangaroo – brands used in nearly every U.S. hospital.

Johnson & Johnson Completes Acquisition of Abbott Medical Optics

Johnson & Johnson recently announced it has completed the acquisition of Abbott Medical Optics (AMO), a wholly-owned subsidiary of Abbott. The all-cash $4.325 billion acquisition was originally announced Sept. 16, 2016, and includes ophthalmic products in three areas of patient care: cataract surgery, laser refractive surgery and consumer eye health. These product lines will now join with the world-leading ACUVUE® Brand Contact Lenses business, and the combined organization will operate under the brand name Johnson & Johnson Vision (J&J Vision).

“With the addition of AMO’s world-renowned ophthalmic surgery business, J&J Vision is poised to become a world leader in eye health,” said Ashley McEvoy, Company Group Chairman, Johnson & Johnson Consumer Medical Devices. “Sight is precious, it’s the sense people fear losing the most. By bringing on board surgical solutions that are supported by the resources and global reach of Johnson & Johnson, we can improve and restore sight for more patients across the globe.”

At nearly $70 billion, eye health is one of the largest, fastest-growing and most underserved segments in healthcare today.

Abbott Completes The Acquisition of St. Jude Medical

Abbott recently announced it has completed the acquisition of St. Jude Medical, Inc., establishing the company as a leader in the medical device arena. The transaction provides Abbott with expanded opportunities for future growth and is an important part of the company’s ongoing effort to develop a strong, diverse portfolio of devices, diagnostics, nutritionals and branded generic pharmaceuticals.

“Abbott has a strong track record of successfully integrating dozens of businesses on a global scale and accelerating growth,” said Miles D. White, chairman and chief executive officer, Abbott. “The addition of St. Jude Medical strengthens our global medical device leadership while offering innovative products to address more areas of care, in more physicians’ offices and hospitals around the world.”

Pursuant to the terms of the Merger Agreement, upon completion of the acquisition, St. Jude Medical became a wholly-owned subsidiary of Abbott. As a result of the completion of the acquisition, Jan. 4, 2017, was the last day of trading of St. Jude Medical shares on the New York Stock Exchange.

Stryker Announces Definitive Agreement to Acquire Entellus

Stryker Corporation recently announced a definitive merger agreement to acquire Entellus Medical, Inc. for $24.00 per share, or an equity value of approximately $662 million. Entellus is a high-growth global medical technology company focused on delivering superior patient and physician experiences through products designed for the minimally invasive treatment of various ear, nose and throat (ENT) disease states. Founded in 2006, and headquartered in Plymouth, Minnesota, the company has a broad portfolio of ENT products, including the XprESS® Multi-Sinus Dilation System and the LATERA® Absorbable Nasal Implant, which are highly complementary to the existing ENT portfolio of Stryker’s Instruments business.

“Entellus is a leader in the ENT segment and offers a comprehensive portfolio of products that enable physicians to conveniently and comfortably perform a broad range of ENT procedures,” stated Timothy J. Scannell, Group President, MedSurg and Neurotechnology.

“The combination of Stryker’s established commitment to making healthcare better and Entellus’ innovative products within the ENT segment will continue to provide our customers the tools they need for cost effective solutions,” said Robert White, CEO of Entellus. “I look forward to the additional progress we will make together.”

The closing of this transaction is subject to approval by Entellus’ stockholders, expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The transaction is expected to be dilutive to Stryker’s 2018 adjusted net earnings per diluted share [1] by approximately $0.04 and accretive thereafter.

Smith & Nephew Closes $210m Rotation Medical Buy

Smith & Nephew recently announced that it closed the $210 million acquisition of Rotation Medical and its regenerative shoulder repair treatment.

The deal called for the British orthopedics and wound care giant to pay $125 million in up-front cash, with another $85 million on the line over the next five years in financial milestones.

Plymouth, Minn.-based Rotation’s bioinductive implant is designed to induce new tissue growth after a patient suffers a rotator cuff tendon tear. The device won FDA clearance in March 2014. Today Smith & Nephew said filing is being prepared for CE Mark approval in the European Union.

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