Endo Health Solutions ($ENDP) completed the sale of its HealthTronics urology device business, cleaving off the unwanted segment to Altaris Capital Partners for a deal worth up to $130 million.
Endo will receive an upfront cash payment of $85 million, and the rights to additional cash payments of up to $45 million based on the future performance of HealthTronics. In return, Altaris will receive devices to break up gallstones, laser treatments for benign prostate hyperplasia and cryotherapy technologies.
The deal marks the end of a long road for Endo's urology unit: In June, the company said it would "explore strategic options" for HealthTronics, and sold its radiation therapy and pathology lab segments to Cambridge, MA's Metamark Genetics for $25 million. Earlier this month, the company announced its deal with Altaris for the remainder of the business.
|Endo CEO Rajiv De Silva|
Selling off Healthtronics was also part of new CEO Rajiv De Silva's bigger plan for Endo: Since assuming the role of CEO in 2013, De Silva announced changes including a $325 million cut in annual costs and layoffs for up to 15% of the company's workforce. After years of stagnant sales and plummeting revenues, wholesale restructuring could be exactly what the doctor ordered.
"The divestiture of HealthTronics enables us to focus more sharply on achieving our objective of building Endo into a leading product-based specialty healthcare company," De Silva said in a statement earlier this month.
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