Olympus announced that it agreed to acquire Korea-based Taewoong Medical, a maker of medical devices, including stents, for $370 million.
Taewoong Medical manufactures devices including gastrointestinal (GI) metallic stents. Olympus intends to use the acquisition to strengthen its GI endotherapy portfolio capabilities.
According to a news release, Olympus plans to pay approximately $370 million in cash to Taewoong. Of that total, the company intends to pay $255.5 million at closing. The remaining $114.5 depends on the completion of future milestones. Olympus expects to complete the transaction on June 30, 2023.
“For over three decades, Taewoong Medical has been a leading manufacturer of GI stents, renowned for its innovative technology and diverse product range,” said Kyong-min Shin, president and CEO of Taewoong Medical. “Our company has a robust market presence in Korea, Japan, and Europe, and exports to 86 countries worldwide. Moving forward together with Olympus, Taewoong Medical will focus its capabilities to provide medical professionals and patients with superior products and services through continuous investment in R&D and manufacturing technology.”
About Taewoong’s offerings and how they fit at Olympus
Taewoong’s GI stents include designs for the biliary tract, esophagus, colon and duodenum treatments. The stents combine strong radial force with high flexibility to conform to the various anatomies. Even if curved, the metallic stents are less likely to buckle, reducing the risk of restenosis.
Olympus said the addition of Taewoong’s devices enables it to strengthen its offerings in the GI space. The company outlined its intent to target GI in its medical business strategy, announced at the end of 2021.
Moving forward, Olympus says it plans to continue to find and execute investments through acquisitions like this one.
“Olympus’ Endotherapy Division is committed to providing a full portfolio of clinically differentiated technologies aimed at treating patients who suffer from GI disease, and with the acquisition of Taewoong Medical, this further demonstrates our commitment to this critical segment of our business,” said Gabriela Kaynor, global division head of the therapeutic solutions division at Olympus. “Taewoong Medical has developed a full portfolio of GI metal stents that will immediately enhance our already robust offering of GI devices.”