ICU Medical said it acquired Excelsior Medical for $59.5 million, with Excelsior’s SwabFlush and pre-filled saline and heparin flush syringes going to Medline Industries for $27 million upon closing.
Excelsior developed, manufactured and commercialized the SwabCap and SwabFlush devices for disinfecting and protecting needleless IV connectors, San Clemente, Calif.-based ICU Medical said.
The split will put the SwabCap into ICU Medical’s portfolio and the SwabFlush into Medline’s.
“ICU Medical has always been deeply focused on safety for both the patient and the clinician in the infusion therapy category. The SwabCap used in conjunction with the Clave, offers a best in class solution for clinicians. We have been studying the category for a long time and believe this acquisition is the most effective way to enter the market, where we can also leverage current and future innovations,” ICU Medical infusion systems division veep Alison Burcar said in a press release.
“Our ability to work creatively with ICU Medical is a great outcome for all parties. We believe we can improve overall economic and clinical value of the flush syringe market with our entry, and we are excited about growing a clinically differentiated product like SwabFlush. We are pleased to have a long-term supply agreement with ICU Medical for the SwabCap® component of this product,” Medline Dynacor division president Dante Tisci said in prepared remarks.
The transaction is being funded with cash on hand, ICU Medical said, and expected to be neutral to earnings in 2015. The company expects the acquisition will add incrememental revenue of $18 to $20 million and contribute minimal earnings per share in 2016.
Excelsior is owned by RoundTable Healthcare Partners.
