Endo targets American Medical Systems for $2.9 billion | Acquisitions roundup

April 12, 2011 By MassDevice staff

A company that began life in the pharmaceutical sector is venturing forth into devices in its quest to become a more diversified health care company.

Chadds Ford, Pa.-based Endo Pharmaceuticals Holdings Inc. (NSDQ:ENDP) announced that the company is buying Minnetonka-based American Medical Systems Holdings Inc. (NSDQ:AMMD), a manufacturer of medical devices focusing on male and female pelvic health for $30 per share, or $2.9 billion in cash. The deal includes Endo assuming and repaying $312 million of AMS debt.

Endo projected that 2011 revenue for the combined company would be $3 billion with $1 billion in earnings before interest, tax, depreciation and amortization (EBITDA). The acquisition would add about 60 cents per share to Endo’s 2012 adjusted diluted earnings per share once it closes, the company estimated.

The combined company would also have a total of 4,000 employees. AMS employs 1,200 people in nine countries, according to its website. Its first product — an artificial urinary sphincter implant — came out in 1972 and the company went public in 2000.

“Through the acquisition of AMS, we will gain scale in devices and services, and will be positioned as a leading provider of healthcare solutions in the field of pelvic health, with a full spectrum of product offerings ranging from pharmaceuticals to medical devices,” Endo CEO Dave Holveck said in prepared remarks.

In 2010, Endo bought HealthTronics, which makes a full line of urology equipment and products, including lithotripters and surgical lasers for treatment of enlarged prostate (BPH).

The transaction needs to be approved by AMS shareholders and is expected to close in the third quarter of 2011.

AMMD shares rocketed more than 32 percent to close at $29.50, up $7.17 for the day. ENDP shares ended the day up 21 cents, or about a half percent, to close at $41.06.

Here’s a roundup of companies announcing mergers, acquisitions and divestitures.

Shrink enters deal to buy Nanopoint
Shrink Nanotechnologies Inc. (OTC:INKN), an innovative high technology company, announced that it has executed a binding letter of intent to acquire 100 percent of Hawaii-based Nanopoint Inc., a biomedical instrumentation and microfluidics company with global distribution for its award-winning suites of life sciences products.
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MD-IT closes merger deal with MDnetwork
MD-IT, a provider of medical documentation software and service to ambulatory clinics and physician offices, announced that it has concluded a merger agreement with MDnetwork Inc. Bard Betz CEO of privately-held MDnetwork, joined MD-IT as vice president of channel development, writes EMR Daily News.
Read more

Rochester Medical closes Laprolan acquisition
Rochester Medical Corp. (NSDQ:ROCM) announced that it has now completed the previously announced purchase of Laprolan B.V., the former Medical Supplies Division and wholly owned subsidiary of Fornix BioSciences N.V. Under the terms of the purchase agreement the purchase is deemed retroactive to January 1.
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CareFusion acquires technology for sorting and managing pharma waste
CareFusion (NYSE:CFN), a leading global medical technology company, announced it has acquired technology to automate the segregation of pharmaceutical waste, helping hospitals reduce cost, improve regulatory controls and facilitate environmental responsibility.
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LabCorp signs deal to buy Orchid Cellmark
Laboratory Corporation of America Holdings (NYSE:LH) and Orchid Cellmark Inc. (NSDQ:ORCH), a provider of DNA testing services primarily for forensic and family relationship applications, announced that they have entered into a definitive agreement and plan of merger under which LabCorp will acquire all of the outstanding shares of Orchid Cellmark in a cash tender offer for $2.80 per share for a total purchase price to stockholders and optionholders of approximately $85.4 million.
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Medicomp announces company purchase from United Therapeutics
Medicomp Inc., previously a wholly-owned subsidiary of United Therapeutics Corporation, announced that it has been acquired by an investment group made up of current and past Medicomp management led by Dr. Dan Balda, Medicomp’s president and CEO.
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CryoLife begins tender offer for Cardiogenesis shares
CryoLife Inc. (NYSE:CRY), an implantable biological medical device and cardiovascular tissue processing company, announced that it, through its wholly-owned subsidiary CL Falcon Inc., has commenced a cash tender offer for all outstanding shares of Cardiogenesis Corp. (OTC:CGCP) common stock.
Read more

Thermo Fisher closes Athena Diagnostics and Lancaster Labs divestitures
Thermo Fisher Scientific Inc. (NYSE:TMO) completed the previously announced sales of its two laboratory-testing services businesses, Athena Diagnostics and Lancaster Laboratories, in two separate transactions, resulting in total proceeds of $940 million.
Read more

Material from MedCity News was used in this report.

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