Halyard Health, Owens & Minor close $710m infections business sale

May 1, 2018 By Brad Perriello Leave a Comment

Halyard Health (NYSE:HYH) and Owens & Minor (NYSE:OMI) said today that they closed the $710 million sale of Halyard’s surgical and infection prevention business.

The deal adds $1 billion in revenues and $80 million in earnings before interest, taxes, depreciation & amortization to Owen’s & Minor’s books annually. Halyard has said the sale speeds its move toward becoming a pure-play medical device company in the higher-margin pain management and chronic care markets.

Halyard said today that it plans to use the estimated $600 million in net proceeds to pay down debt, fund R&D and fuel mergers and acquisitions.

“The divestiture of S&IP transforms us into a focused, pure-play medical devices business with a clear playbook for solid revenue and earnings growth,” CEO Joe Woody said in prepared remarks. “The additional financial capacity will fund our dual-track growth strategy, focused on product innovation and strategic M&A and underpinned by a commitment to commercial excellence.”

“With the completion of this transaction — the largest in Owens & Minor’s history — we have achieved a key step in our strategy, which positions us for more profitable growth as we continue to transform the company,” Owens & Minor chairman, president & CEO Cody Phipps said in a press release. “The S&IP business provides a global manufacturing network, a strong pipeline of new products, and a successful track record of product development. Additionally, the S&IP business will add scale to our existing own-brand product portfolio and our global sales team, contributing to expansion of the markets we serve. We are very pleased to welcome the Halyard Health S&IP teammates and their exceptional products and capabilities to the Owens & Minor family.”

“The S&IP transaction enhances our ability to execute our strategy and pursue growth opportunities in 90 countries around the world and will further position us to achieve sustainable, profitable growth with its leading portfolio of surgical and infection prevention products and global manufacturing capabilities,” added CFO Richard Meier. “Strategically and financially attractive, the transaction gives us a highly regarded portfolio of products, while further enabling our ability to provide value for our customers. We believe this will enhance our ability to respond quickly to a changing healthcare industry by focusing on unique product solutions and value-enhancing bundles as we expand into more clinically relevant points of care.”

Annual pre-tax synergies are expected to be $13.5 million in the next 12 months and roughly $40 million over the next three years, the Richmond, Va.-based company said.

These ‘smart’ bandages could heal chronic woulds
UConn biomedical engineers are touting a wirelessly controlled “smart” bandage and corresponding platform for delivering medications to chronic, non-healing wounds. UConn’s School of Dental Medicine, School of Medicine and School of Engineering comprise the biomedical engineering department, which contributed to developing the smart bandage. Ali Tamayol, an associate professor at UConn, led the development of… […]
How to cook up a successful medtech company
New medical device companies need much more than money to get their businesses started. A medtech-specific accelerator can help with seed funding and positioning for a Series A round. Shai Policker, MEDX Xelerator As we dive into 2020, the medtech sector will continue to offer tremendous opportunity for innovators and investors alike, with growth projected… […]
Could this patch help mend a broken heart?
Researchers in Ireland have developed a prototype patch that they say does the same job as crucial aspects of heart tissue. The patch was designed to withstand the mechanical demands of heart tissue and mimic the electrical signaling properties that allow the heart to pump blood throughout the body. The researchers believe it brings medtech… […]
Black History Month: This inventor laid the foundation for today’s pacemakers
Most people in medtech know of Earl Bakken’s contributions to pacemakers and cardiac rhythm devices, but without Otis Boykin, pacemakers wouldn’t have the pacing technology they do today. Boykin, an African-American inventor and engineer, had a special interest in resistors. His mother died from heart failure when he was 1 year old. Thirty-one years later,… […]
Could this 3D bioink printer speed wound healing?
The University of Toronto is touting a new handheld 3D printer that can deposit sheets of skin to cover burn wounds and accelerate the healing process. A study, led by Richard Cheng under the supervision of Axel Guenther, published in Biofabrication revealed that the 3D printer completed successful in-vivo trials on full-thickness wounds, according to a report… […]
8 types of FDA-approved devices that treat the heart
Just starting to learn about all of the medical devices out there for treating cardiovascular diseases? The U.S. FDA has a good, basic roundup on its website of the most common types of cardiovascular devices it regulates. Here’s the list, along with the FDA’s descriptions: 1. Automated external defibrillators (AEDs) “Portable and automatic, these devices… […]
Medtronic seeks to boost surgical robotics play with Digital Surgery acquisition
Medtronic (NYSE:MDT) announced today that it has acquired Digital Surgery (London), a privately-held pioneer in surgical artificial intelligence, data and analytics, and digital education and training. Financial terms of the deal were not disclosed. Medtronic said the purchase will strengthen its robot-assisted surgical platform and its broader portfolio. The medical device giant is making a big play… […]
Solvay expands advanced materials offerings in the medtech space
Solvay, a supplier of advanced materials and specialty chemicals, announced a pair of advances that it hopes will help it expand its healthcare business. Speaking yesterday at Solvay’s booth (#2414) at MD&M West, the company’s healthcare sales development manager Rose Catherin said the new materials will help improve the performance of specialty surgical devices including… […]
11 states ask EPA to crack down on ethylene oxide emissions
Eleven state attorneys general are urging the U.S. Environmental Protection Agency to impose stricter regulations over commercial operations that emit ethylene oxide (EtO), a widely used medical device sterilant gas. The EPA, which considers EtO a carcinogen, has been fielding comments on it in light of public outcry over emissions from medtech sterilization plants during… […]
Is it possible to ‘knit’ replacement blood vessels?
A new way to replace a patient’s damaged blood vessels may be on its way, as researchers in France are figuring out a way to “knit” new vessels with a collagen-based extracellular matrix. Inserm researcher Nicolas L’Heureux and his colleagues at Inserm/Université de Bordeaux’s tissue bioengineering unit published a study in Acta Biomaterialia to outline… […]
Applied Plastics has a new website, online store
Applied Plastics (Norwood, Mass.) — maker of PTFE-coated products for advanced catheter systems — announced today that it is rebranding to improve its customer interface and support continued growth. The rebranding includes a new website, online store and refreshed brand identity. The company this week is showing off the new look and its online PTFE… […]