AngioDynamics ($ANGO) has agreed to buy rival Navilyst Medical, which focuses on vascular access, interventional radiology and interventional cardiology, in a deal valued at $372 million. The buy is expected to boost AngioDynamic's vascular access market share, The Post Star notes. The boards of both companies have approved the transaction, which is expected to close by the quarter ending May 31.
AngioDynamics CEO Joseph DeVivo, who joined the company last fall after serving as global president of Smith & Nephew Orthopedics, has been eyeing acquisition opportunities since he came on board. The two companies had previously spoken about a potential acquisition, but nothing came of those discussions. However, DeVivo restarted talks, culminating in this week's announcement, according to The Post Star.
"The acquisition of Navilyst brings AngioDynamics scale, technology and operational excellence," DeVivo explains in a statement. "It strengthens AngioDynamics' current business by enabling us to focus on our key channels--Vascular Access, Peripheral Vascular and Oncology/Surgery--and accelerates the ability of our global sales leaders to focus on key clinical call points. The combined company will offer a more compelling portfolio of products to our customers, allowing the sales force to be more productive and compete more effectively."
DeVivo noted both companies had faced challenges recently, but he is excited about the prospects of the combined businesses. AngioDynamics recently reported second-quarter net sales of $58.1 million, a 9% increase versus the same period last year. However, it saw profits reduced by $1.5 million as a result of a voluntary recall of NeverTouch procedure kits used with the VenaCure EVLT system, Morpheus Smart PICC CT PICCs and DuraMax chronic hemodialysis catheters.
Marlborough, MA-based Navilyst was formed in 2008 when Avista Capital Partners bought Boston Scientific's ($BSX) fluid management and venous access businesses for $425 million in cash. It generated sales of $149 million last year.
AngioDynamics has about 80 employees at its corporate headquarters in Latham, NY, and an additional 300 at a manufacturing facility in nearby Queensbury. Meanwhile, Navilyst employs more than 350 people at its Glens Falls, NY, plant. Both the AngioDynamics and Navilyst manufacturing facilities will remain open, leading to possible new employment opportunities in the future, The Saratogian notes. The combined companies' workforce total will be exceeded only by that of C.R. Bard for the region's medical device industry, the paper adds.