AngioDynamics recently announced the sale of its PICC and Midline product portfolios to Spectrum Vascular for up to $45 million in cash.
The company PICC, Midline and tip location products contributed approximately $43.5 million in annual sales during AngioDynamics’ fiscal year 2023. The transaction consists of $34.5 million paid at closing, an earnout related to sales of the divested products over the next two years equal to $5.5 million and a milestone payment of $5 million paid upon final transfer of the manufacturing of the divested products to a third-party manufacturer.
The company also announced it discontinued the sale of its Uniblate and Starburst Radio Frequency products and Syntax support catheter products.
“Today’s divestiture is another significant milestone in our transformation and supports our focus on driving increased penetration of our medtech platforms in high-growth markets. It builds upon the divestiture of our Dialysis and Biosentry businesses that we announced in June as well as the plan we announced in January to streamline our manufacturing operations,” President and CEO Jim Clemmer said in a news release.
CEO Clemmer also said that discontinuing the product lines and the transaction helps strengthen the company’s balance sheet to optimize its product portfolio and focus on strategic growth for its NanoKnige, mechanical thrombectomy and Auryon businesses.
“The acquisition of our PICC and Midline portfolios provides Spectrum Vascular with strong, well-recognized product lines and a skilled commercial team. We are pleased that Spectrum Vascular, a growing provider of vascular access products, is acquiring our PICC and Midline portfolios and will continue to expand patient access to these industry-leading, high-quality medical devices,” Clemmer said.
AngioDynamics eliminated certain sales, marketing, and operational expenses in conjunction with the transaction, which is inclusive of the restructuring and is expected to be slightly dilutive to fiscal 2024 adjusted earnings per share.
The company anticipates full-year fiscal 2024 revenue to reduce by $50 million. The divestiture of PICC and Midline, together with the discontinued businesses, will be accretive to full-year fiscal 2024 gross margin.
