CareFusion (NYSE:CFN) announced today that it invested $100 million into Israel-based Caesarea Medical Electronics, taking a 40% stake in the infusion pump company.
CME designs, manufactures and markets a range of infusion and syringe pumps and accessories for both home and clinic settings, specializing in portable devices. The company has footprints in 60 countries in 6 continents, and has been working with CareFusion for years, according to a press release.
The funding gives CareFusion rights to make more investments and increase its stake to a majority position over time, granting CME continued autonomy in its operations. The $100 million investment is slated to close by the end of March 2014.
"This investment creates a strategic, long-term relationship with CME, which has great people and great technology that is very complementary to our infusion portfolio," CareFusion CEO Kieran Gallahue said in prepared remarks. "This is another example of how we can put our balance sheet to work through strategic investments that create opportunities to drive growth for the company in new markets and outside the U.S."
The investment is the 2nd large CareFusion deal in recent weeks, following last month’s $500 million acquisition of GE Healthcare’s (NYSE:GE) Vital Signs medical consumables business. Totowa, N.J.-based Vital Signs, which brings in about about $250 million in annual sales, employs more than 1,000 workers, including a manufacturing operation in Shenzhen, China. CareFusion has said it expects the Vital Signs deal to be neutral to modestly accretive to adjusted earnings per share during its fiscal 2014 year.