Bard, which manufactures medical technologies in the vascular, urology, oncology and surgical specialty products fields, will pay $250 million for Medivance. The Murray Hill, N.J.-based company will structure the deal as a merger that it hopes to complete during the fourth quarter after it receives Hart-Scott-Rodino clearance and satisfies other closing conditions.
Bard doesn't expect the transaction to affect its earnings per share in 2011.
Medivance, based in Louisville, Colo., was established in 1998 to develop and commercialize products that control core body temperature after traumatic medical events. Its flagship product is the Arctic Sun Temperature Management System, which it claims is used in a number of the nation's cardiac and neuro hospitals. Bard called Medivance the "market leader" in the field of therapeutic hypothermia, which is a medical treatment that lowers body temperature to protect a patient following a period of insufficient blood flow. Such measures can be taken, for example, after a patient has gone into cardiac arrest.
Bard chairman and CEO Timothy Ring called the treatment an "emerging and growing space" and believes Medivance's offerings are an "important building block" for its own critical care product line.
The deal will allow Medivance's VC backers to cash out on their investment. Since its inception, Medivance has received roughly $50 million in VC funding from firms such as Camden Partners Holdings LLC, Cross Atlantic Partners Inc., MDY Healthcare plc, Partisan Management Group Inc. and Skyline Ventures. The latest funding was an $8.1 million Series E financing led by affiliates of BlackRock Inc. in 2009.
MDY Healthcare said Wednesday that it will realize its investment in Medivance following the deal, receiving between $20 million and $21 million in cash for the sale of its 10.4% stake.
The deal is Bard's second in two months -- it acquired catheter and stent maker ClearStream Technologies Group plc on Sept. 20 in a deal that valued the target's equity at £43.8 million ($68.8 million) -- and is the latest middle-market medtech buyout in what has been an active few months in the sector.
On Oct. 17, Ametek Inc. paid $150 million for eye care technology developer Reichert Technologies Inc., following transactions carried out by Alere Inc. ($364 million for Axis-Shield plc), Stryker Corp. ($135 million for Concentric Medical Inc. and $315 million for Orthovita Inc.), Baxter International Inc. ($380 million for Baxa Corp.) and CAE Inc. ($130 million for Medical Education Technologies Inc.), among others.
Bard, meanwhile, also reported its third-quarter earnings on Tuesday. The company pocketed $130.1 million in net income on $719.2 million in net sales during the quarter. Bard posted $509.2 million in net income on $2.72 billion in net sales in 2010.
Bard's largest shareholders as of a March 18 proxy statement were FMR LLC (11.8%), Bank of New York Mellon Corp. (6.8%), ValueAct Capital (5.3%) and T. Rowe Price Associates Inc. (5.2%). Its stock traded at $84.61 per share midday Wednesday.
Dechert LLP hired funds attorney Asma Chandani as counsel in Los Angeles. For other updates launch today's Movers & shakers slideshow.
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