The acquisition included an upfront payment of $19 million (€18 million) and a possible $12.8 million (€12 million) based on milestones and revenue achievements. Other terms of the deal were not disclosed.
“We are excited about the acquisition of Creagh Medical and the strategic fit of its balloon catheter design and development, and manufacturing capabilities, which are critical to our transformation into a whole-product solutions provider. We are disciplined in our approach for acquisitions, recognizing that these investments must align with our strategic vision and accelerate our transformation. Creagh Medical’s capabilities are a strategic complement to our proven core technology expertise, and we’re confident this acquisition will contribute to our becoming a world-class device innovator, developer and manufacturer,” CEO Gary Maharaj said in a press release.
SurModics expects Creagh Medical to generate $3.5 to $4 million in revenue for the fiscal year 2016, and said the acquisition wil be dilutive on a GAAP and adjusted earnings per share basis, and accretive on an adjusted EPS basis for FY2017.
“We are delighted to be able to combine our world-class balloon catheter development and manufacturing expertise with SurModics, which leads the world in surface modification technologies. Our capabilities are a great strategic fit for the company, strengthening its position as a valued partner to industry-leading medical device manufacturers,” Creagh Medical CEO Tom Greaney said in prepared remarks.
SurModics said the acquisition will aid it in moving to offer whole-product solutions, from being a provider of coating technologies. The company said they plan to update guidance for its FY2016 by the end of the 1st quarter to reflect the acquisition.