Dive Brief:
- Merit Medical late Thursday announced a pair of acquisitions aimed at expanding its catheter offerings in the dialysis market.
- The company said it paid $100 million in cash to acquire dialysis catheters and a sealant system from AngioDynamics, and $32.5 million to buy a catheter system from Bluegrass Vascular Technologies.
- Analysts at Needham said the acquisitions are Merit’s first meaningful deals in years, and the financial aspects are attractive. “We think that the two deals are complementary to MMSI's existing dialysis and biopsy products,” the analysts wrote Friday in a research note.
Dive Insight:
Merit competes in the dialysis care market alongside such big names as Fresenius, Baxter and Medtronic.
The South Jordan, Utah-based company said it completed the acquisition of a portfolio of dialysis catheter products and the BioSentry biopsy tract sealant system from AngioDynamics. The sealant system, used for lung biopsy, is designed to prevent pneumothorax and is complementary to Merit’s other biopsy devices, according to the Needham analysts.
AngioDynamics, in a separate statement, said it intends to use net proceeds to eliminate its existing debt and support further strategic investments.
Merit also announced it acquired the Surfacer catheter system, which provides central venous access, from Bluegrass Vascular.
The combined acquisitions are expected to add about $30 million of revenue annually in key markets, leveraging Merit’s existing commercial footprint, the company said.
Merit reaffirmed its 2023 financial guidance on a stand-alone basis and updated its full-year outlook to include a partial-year impact from acquisitions.
Needham’s analysts said the deals are expected to add to Merit’s non-GAAP EPS in the first full year after closing.
Shares in Merit were virtually unchanged in mid-day trading Friday, at $83.92.
