Teleflex ($TFX) will snatch up Texas-based Vidacare for $262.5 million to add that company's inside-the-bone/vascular access devices to its own product roster.
Assuming closing conditions and certain regulatory approvals can be met, Pennsylvania-based Teleflex said it expects to close the deal in its 2013 fourth quarter.
For Teleflex, this is all about growing its vascular access product portfolio into new areas. According to the company, Vidacare's products help access the inner bone for a number of medical, diagnostic and therapeutic options covering vascular access, emergency medicine, oncology and spinal surgery. Key products at the privately run operation include the EZ-IO Intraosseous Vascular Access System and the OnControl Bone Marrow System.
"The acquisition of Vidacare, an industry leader with a high gross margin profile, will expand our comprehensive vascular access product portfolio with a defining technology," Teleflex Chairman, President and CEO Benson Smith said in a statement.
Smith said Vidacare's tech will "provide either a bridge to longer term access devices such as a central venous catheter, or a rapid, less expensive, and lower risk alternative for difficult vascular access when long-term central lines are not necessary."
The Vidacare bid is Teleflex's largest M&A deal in a while, but it represents the latest in a steady stream of purchases. In June this year, for example, Teleflex acquired Eon Surgical, an Israeli startup focused on minimally invasive microlaparoscopy surgical technology. In 2012, Teleflex pursued a number of buys. Among them, it grabbed Hotspur, the maker of a two-in-one balloon dilation catheter that goes with Teleflex's VisioValve injection system, for $15 million. Last year, Teleflex also spent $30 million to buy MIT spin-out Semprus Biosciences, whose technology helped enhance the company's vascular access catheters. There's also Teleflex's 2012 purchase of LMA International for $276 million, giving it a line of laryngeal masks for use in anesthesia and emergency care.
Teleflex expects its Vidacare acquisition won't significantly affect 2013 revenue or earnings per share. The company noted it will add $68 million to $72 million of revenue and 10 cents to 15 cents in adjusted earnings per share to the 2014 fiscal year, excluding one-time costs related, in part, to the acquisition and blending of operations.
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