Cook Medical has signed a letter of intent to sell its Reproductive Health business to CooperCompanies, the two companies announced today.
CooperCompanies (NYSE:COO) plans to pay privately-held Cook Medical $875 million: $675 million at closing, then the remaining $200 million paid in four $50 million annual installments.
The proposed deal — which could close in the second quarter of 2022 — is subject to applicable local consultation obligations and regulatory approvals.
CooperCompanies CEO Al White described the acquisition of the $158-million-a-year business (up 17% in constant currency in 2021) as an excellent strategic fit: “We’re improving our international fertility footprint, especially within the Asia-Pacific region, and adding highly synergistic and respected labor and delivery devices to our ObGyn portfolio.”
For more than 40 years, Cook focused on reproductive health. Over the decades, it developed products for obstetrics and gynecology, in vitro fertilization (IVF) and assisted reproductive technology (ART). The company boasts that its work included developing the first needle specifically for IVF treatments.
“Our history with reproductive health has been full of innovations to help patients fulfill their dreams of having a family,” D.J. Sirota, SVP of Cook Medical’s MedSurg specialty, said in a news release.
“This agreement represents more than a simple transaction; it is a commitment to offer a more complete range of solutions to customers and patients around the world,” Sirota continued. “CooperSurgical is uniquely positioned to combine Cook’s reproductive health portfolio with their resources and plans to significantly invest in this product portfolio.”
After the transaction closes, Cook will continue to manufacture products for CooperSurgical during a two-year transition period, boosting manufacturing capacity to keep up with growth. No manufacturing jobs are at risk, according to Cook. Manufacturing employees supporting reproductive health products will continue to do so during the transition period, eventually cross-training to make other products at the company.
“Like we always have been, we remain committed to the communities where we have facilities and employees, including Spencer [Indiana], Vandergrift [Pennsylvania] and Brisbane [Australia] where these products are manufactured,” said Pete Yonkman, president of Cook Medical and Cook Group.
“This agreement will allow us to invest in future growth and new technologies. The rest of the Cook organization will continue as privately held, family-owned companies with no plans to change that status.”