Cooper Cos. (NYSE:COO) said today it inked a deal to purchase the Paragard intrauterine device assets and business, including a Buffalo, N.Y.-based factory, from Teva Pharmaceuticals (NYSE:TEVA) for $1.1 billion in cash.
The deal has been unanimously approved by both Teva and The Cooper Co.’s boards of directors, and is expected to close prior to the end of 2017, the companies said, funded by a bridge loan of $1.1 million to Cooper from Guggenheim Securities.
The Paragard, currently only sold in the US, has recorded revenues of approximately $168 million for the 12 months prior to June 30 this year, Pleasanton, Calif.-based Cooper said.
The company expects the transaction to be accretive to its gross and operating margins and accretive to earnings per share by between 70¢ and 75¢ during the 1st year.
“We are extremely pleased to announce this acquisition which will expand CooperSurgical’s business in a large and growing segment of the contraceptive device market. CooperSurgical will now offer the only IUD on the U.S. market that is hormone-free, long-lasting, and reversible. This is also a perfect strategic fit as it leverages CooperSurgical’s long-standing, strong relationships with gynecologists,” prez & CEO Robert Weiss said in a prepared statement.
Last November, Cooper’s CooperSurgical subsidiary acquired Smiths Group‘s (LON:SMIN) Wallace in-vitro fertilization product line for $174 million (UK £140 million).