Enhancing Company Offerings in the Interventional Access Device Business
Terumo Corporation (TSE: 4543) announced today that it has reached an agreement with Abbott and St. Jude Medical, Inc. to acquire certain products owned by both for a total of US$1.12 billion.
Based on an agreement in principle previously announced by Terumo, Abbott and St. Jude Medical on October 18, 2016, Terumo will acquire St Jude Medical’s Angio-Seal™ and FemoSeal™ vascular closure product lines and Abbott’s Vado™ Steerable Sheath. The total annual sales of the businesses to be acquired is approximately US$268 million.
Terumo supplies a range of interventional access devices, including introducer sheaths and guide wires, and has a broad global customer base. “The acquisition, which brings us leading vascular closure devices, will enable Terumo to provide customers with a comprehensive product offering in minimally invasive entry site management and lesion access,” said Yutaro Shintaku, President and CEO of Terumo Corporation. “We expect that the acquisition will enhance our presence in the United States, which is the largest market for medical devices.”
By building on Terumo’s existing infrastructure and competencies, the acquisition will enable Terumo to maximize the value of the acquired businesses and contribute to supporting safe and efficient interventional procedures.
The acquisition remains subject to antitrust regulatory approvals and successful completion of Abbott’s proposed acquisition of St. Jude Medical.
*No change from the previous press release on October 18, 2016 on the businesses to be acquired and the purchase price
(1) Businesses to be acquired
Assets and liabilities related to St. Jude Medical's Angio-Seal™ and FemoSeal™ vascular closure products
Stock of Kalila Medical, Inc. (an affiliate company of Abbott) manufacturing Abbott's Vado™ Steerable Sheath
(2) Total sales: Approximately US$268 million (FYE 2015/12)
*Ordinary income and amount of assets and liabilities of the businesses to be acquired are not available.
(3) Purchase price, payment and financing
Purchase price: US$1.12 billion
Financing: Cash reserves and debt
(4) Accounting treatment
The acquisition corresponds to an acquisition under “the Accounting Standard for Business Combinations” (The Accounting Standards Board of Japan Statement No. 21; September 13, 2013), and it is anticipated that positive goodwill will be recorded. The amount of goodwill is being examined.
(5) Impact on business performance
The impact of the acquisition on Terumo’s business performance is being examined.
Not yet determined
Ownership before the acquisition: Terumo Americas Holding, Inc. 0%
Ownership after the acquisition: Terumo Americas Holding, Inc. 100%
*Kalila Medical, Inc.’s business performance and amount of assets and liabilities are undisclosed due to the confidential disclosure agreement.
Tokyo-based Terumo Corporation is one of the world's leading medical device manufacturers with over US$5 billion in sales and operations in more than 160 nations. Founded in 1921, the company develops, manufactures and distributes world-class medical devices including products for use in cardiothoracic surgery, interventional procedures and transfusion medicine; the company also manufactures a broad array of syringe and hypodermic needle products for hospital and physician office use. Terumo contributes to society by providing valued products and services to the health care market and by responding to the needs of health care providers and the people they serve. Terumo Corporation's shares are listed on the first section of the Tokyo Stock Exchange (No. 4543, Reuters symbol <4543.T>, or Bloomberg 4543: JP) and is a component of the Nikkei 225, Japan's leading stock index.
This is HCP only content
website and cannot be refused. Other cookies are only placed if you choose to do so. For further information, please read our cookies policy.
Essential cookies to ensure the website functions well.
Cookies to help us measure the general use of our website.
Cookies that save personal information while browsing.