Minneapolis-based Medtronic has agreed to buy cardiac surgery product maker ATS Medical, which also is based in Minnesota, for $370 million, or $4.00 per share in cash.
ATS Medical is a leading developer, manufacturer and marketer of such products as heart valves and cryoablation technology. The company's innovative Open-Pivot bileaflet mechanical and 3f pericardial valve technology, along with its CryoMaze family of ablation products, will extend Medtronic's current product offerings to cardiac surgeons.
"The acquisition of ATS Medical will further strengthen our CardioVascular business," says Scott Ward, SVP of Medtronic and president of the CardioVascular business. "ATS is an innovative and successful company that is well respected by cardiac surgeons throughout the world."
"Medtronic's complementary mission and leadership in treatments for structural heart disease represents the best possible opportunity for bringing ATS Medical's innovative cardiac surgery technologies to more surgeons and patients," says Michael Dale, chairman, president and CEO of ATS Medical. "We are very proud of the business that ATS Medical's past and present employees have built while maintaining an unwavering focus on innovation and, above all, delivering products that provide superior clinical outcomes."
Buried in documents filed with the SEC, Medtronic says it will lend ATS as much as $30 million to help the company redeem notes due in 2025, repay outstanding borrowings on a loan and finance working capital, the Minneapolis Star Tribune points out. If the agreement is terminated, the loan can be used for general corporate purposes. Payments will be due monthly and carry an annual interest rate of 10 percent, documents state.
After the deal was announced, shares of ATS leveled out in mid-afternoon trading at $4, up $1.41, or 54.4 percent, the Minneapolis-St. Paul Business Journal reports.