Through the deal, Teleflex will pick up all outstanding shares of Vascular Solutions at $56 per share, in cash. Boards of both companies have approved the deal, which is expected to close during the 1st half of 2017.
“We are extremely excited to announce this definitive agreement with Vascular Solutions, as it represents a significant step forward in our strategy. Vascular Solutions is a truly unique company with differentiated technologies serving the coronary and peripheral vascular markets. They have a demonstrated long-standing track record of delivering double-digit annual revenue growth, stemming from organically developed, patented products that address unmet clinical needs in high-value procedure categories. In addition, they have established a strong franchise focused on interventional cardiology and interventional radiology which complements Teleflex’s existing businesses. Importantly, while we believe Vascular Solutions has compelling growth opportunities as they continue to build their business with their existing product portfolio, we look forward to potential longer-term tailwinds as we benefit from their robust R&D pipeline and our international distribution network moving forward,” Teleflex CEO Benson Smith said in a press release.
Vascular Solutions, founded in 1997, produces more than 90 medical devices designed for minimally invasive coronary and peripheral vascular procedures.
Teleflex said the acquisition of the company’s portfolio will “meaningfully accelerate” the growth of its vascular and interventional business and increase revenue as it allows entry into the coronary and peripheral vascular market.
“We are delighted with this combination, which will further improve our commitment to coronary and peripheral vascular care by providing greater access to our innovative product offerings for patients around the world, while offering our shareholders immediate value. We have tremendous respect for the Teleflex team, who share our commitment to patients and providers worldwide. We look forward to working closely with the Teleflex team to achieve a smooth transition,” Vascular Solutions CEO Howard Root said in prepared remarks.
“Similar to Vidacare and LMA, this transaction represents an opportunity to acquire a company that meets our key M&A objectives, which include obtaining a product portfolio that fits into our existing strategic business unit franchises and call points, thereby allowing for synergy generation; products that provide a superior clinical benefit to existing alternatives and a cost benefit to hospitals; long product life cycles that benefit from patent protection; and the ability to further improve our financial profile. This transaction also bolsters Teleflex’s leadership and management team with the additions of key members of the Vascular Solutions leadership team who will be instrumental in continuing to drive the business forward. For Teleflex shareholders, we expect this transaction to create value by generating attractive financial returns fueled by incremental revenue growth and accretion to our adjusted margins and adjusted earnings per share beginning in 2017,” Smith said in a prepared statement.
Steve MacMillan took over as CEO of Hologic in 2013, drawing on his experience at medtech titans like Stryker and Johnson & Johnson. Since then, Hologic has grown into a $3 billion business.
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