The deal includes a an additional $400,000 milestone pegged to sales targets over the next 12 months, Parsippany, N.J.-based Trinity said.
“I can’t express enough how pleased we are to complete this transaction,” CEO John Easom said in prepared remarks. “I believe we will see more and more opportunities where consumable medical devices do not fit with the infrastructure of a technology or equipment based business, or fit with companies requiring overburdening overhead to accommodate a wide variety of products other than consumables. We are excited about the addition of the neonatal disposables product line and look forward to building relationships with our new customers. With the highly regarded Klear-Trace and NeoGuard brands, the neonatal product line has great potential to fulfill the needs of an expanded range of customers and fits strategically within our product portfolio.”
“The sale of this legacy product line allows CasMed to tighten further our strategic focus on our high growth Fore-Sight cerebral oximetry business where we see opportunities for continued market penetration and expansion,” added president & CEO Thomas Patton.
The neonate disposables business put up sales of nearly $2.2 million last year, CasMed said in a regulatory filing.
Trinity said CasMed also agreed to help with the transition of manufacturing and customer services operations for the rest of 2016.
“Trinity intends to maintain and grow the Klear-Trace and NeoGuard product lines with long-established distributors and customers,” president & COO Benn Vennesland said.