ICU Medical (NSDQ:ICUI) this week closed its $900 million acquisition of the Hospira infusion pump business from Pfizer (NYSE:PFE), confirming last year’s rumors that the drug giant was looking to sell the business.
The deal, which was scaled back from $1 billion last month, called for ICU Medical to offer 3.2 million new shares, or $419.3 million, and $275 million in cash, along with an additional possible $225 million in cash based on performance milestones through the end of 2019. The transaction will put Hospira’s infusion systems business, including IV pumps, solutions, disposables and “certain other assets” in ICU Medical’s hands, while Pfizer will hold a 16.6% stake in ICU.
“We are pleased that Hospira Infusion Systems is now part of ICU Medical and welcome our new Hospira colleagues to the ICU team. We look forward to working together to continue providing quality, innovation and value to our clinical customers worldwide,” chairman & CEO Vivek Jain said in prepared remarks.
ICU Medical said it plans to release its full-year guidance when it announces its 4th-quarter results later this month.
Pfizer paid $15 billion for Hospira in September 2015, its largest-ever buyout. In addition to the infusion pump business, Hospira makes generic versions of injectable drugs and biosimilars including a knockoff of Johnson & Johnson‘s (NYSE:JNJ) blockbuster anti-inflammatory Remicade. Pfizer paid $90 per share in cash, a 39% premium to Hospira’s closing stock price the day before the February bid.