Medline Industries will pay $167.5 million to acquire the Namic fluid management business from AngioDynamics (NSDQ:ANGO), the companies announced today.
The deal, subject to customary closing conditions, is expected to close in the summer. It will allow Medline to acquire the manifolds, contrast management systems, closed fluid systems, guidewires, disposable transducers and interventional accessories offered under the Namic brand.
The Glens Falls, N.Y. plant and 330 workers serving the Namic brand will become part of Medline as part of the acquisition. The Glen Falls facility makes injection molded components and kits.
Medline officials plan to fold the Namic business into the company’s existing Cath Lab business to create a new division. The goal is enhanced market position and greater vertical integration, a company spokesman told Medical Design & Outsourcing.
“Medline’s scale and extensive kitting operations are sure to drive more momentum for Namic products and deliver opportunities for efficiency for customers,” Medline CEO Charlie Mills said in a news release.
AngioDynamics meanwhile plans to use the roughly $160 million in net cash proceeds from the deal to pay down its entire outstanding debt, as well as support strategic investments in the business.
“Over the past three years, we have streamlined our manufacturing operations and made significant improvements to our research and development process, enabling us to develop high-quality, innovative medical devices for our customers,” AngioDynamics CEO Jim Clemmer said in a news release. ,
“We are excited that this strategic transaction will enable us to accelerate highly-focused investments in our key therapeutic areas including oncology and thrombus management,” Clemmer added.
