CareFusion pours $100M into Israeli infusion pump maker for a minority stake

One of Caesarea's Bodyguard line of portable infusion pumps--Courtesy of Caesarea

CareFusion ($CFN) has its eye on an Israeli infusion pump maker and will invest $100 million in the company's operations, the San Diego med tech company's second big deal in the last month.

CareFusion said its financial commitment gives it a 40% minority stake in Caesarea Medical Electronics, which designs, makes and markets infusion and syringe pumps, plus related accessories and equipment. They're sold in 60 countries (mostly outside the United States). Doctors and hospitals use them for tasks including IV and epidural anesthesia, pain management and infusions during MRI procedures, the company said. Caesarea is also known for its BodyGuard line of portable infusions pumps.

Why do the deal? For one thing, the two companies have had a long relationship and CareFusion has often been a Caesarea client, according to the deal announcement. With that in mind, a stake in Caesarea helps complement CareFusion's existing infusion product line and offers new ways to grow, CareFusion Chairman and CEO Kieran Gallahue said in a statement.

"This is another example of how we can put our balance sheet to work through strategic investments that create opportunities to drive growth for the company in new markets and outside the U.S.," Gallahue said in a statement.

Expectations are that the deal will close by March 31, 2014, and executives may tweak the final investment number by that time, CareFusion noted. Down the line, Caesarea may find CareFusion becoming a majority owner. The deal gives it the right to invest more money into the company to reach that point, after which Caesarea would still operate independently and maintain its distributor network.

CareFusion snatched up GE Healthcare's ($GE) Vital Signs arm in November 2013 for $500 million, an acquisition the company said will help it to become a leader in respiratory and anesthesia consumables and also fuel a broader global expansion.

- read the release

BD&L Summit

Deal-Making Insights for the Life Sciences Industry

Bringing together key deal-makers and serving as an open forum for cross-functional business development and legal teams to share valuable insights and actionable strategies on successfully managing alliances, licensing agreements, and M&A deals.