ConMed (NSDQ:CNMD) said today that it inked a deal to acquire surgical smoke evacuation tech developer Buffalo Filter for $365 million.
Buffalo Filter develops and produces surgical smoke evacuation technologies, including smoke evacuation pencils, smoke evacuators and laparoscopic solutions, ConMed said.
Utica, N.Y.-based ConMed said that it expects to finance the transaction through a combination of new convertible notes and an expanded and amended credit facility. ConMed expects the acquisition to close in the first quarter of next year.
“We are excited to join ConMed and continue our mission of improving safety in the operating room. We believe that the combination of our dedicated teams, as well as our proven research and development expertise, will enable us to continue to bring best-in-class smoke-evacuation products to a growing global market,” Buffalo Filter prez & CEO Samantha Bonano said in a press release.
In connection with the acquisition, ConMed reiterated its previously issued financial guidance for the remainder of the year. The company said it expects the acquisition to be neutral to adjusted cash earnings per share next year, and between 10¢ and 15¢ er share accretive in 2020. On a GAAP basis, the transaction is expected to be dilutive in 2019 and less dilutive or increasingly accretive thereafter.
“This acquisition is a strong strategic fit with our general surgery portfolio, and the platform technology provides us a leading position in the high-growth smoke-evacuation market. We believe this technology, combined with our focused innovation in the surgical suite, will deliver impactful solutions to address significant challenges confronting healthcare practitioners and their patients. We look forward to welcoming Buffalo Filter’s talented team to ConMed,” ConMed prez & CEO Curt Hartman said in a prepared statement.
In early November, ConMed posted third quarter earnings that met EPS expectations on Wall Street and topped sales consensus.
