Merit Medical Systems (Nasdaq:MMSI) announced today that it agreed to acquire Cook Medical’s lead management portfolio for $210 million.
Cook Medical’s lead management business provides medical devices and accessories used in lead management procedures. These procedures occur in patients who need a pacemaker or an implantable cardioverter-defibrillator (ICD) lead removed or replaced.
Merit Medical says the business it proposes to acquire generated approximately $37 million in revenue over the 12-month period ended Dec. 31, 2023. The company projects contributed revenues between $4 million and $6 million from a projected closing date of Oct. 31 through Dec. 31, 2024. During that same time, it anticipates a dilution to non-GAAP operating margin, non-GAAP net income and non-GAAP EPS.
If it completes the acquisition, the company expects a dilutive impact to GAAP net income and EPS in the first full year post-close. It then expects a neutral impact in the second year, followed by an accretive impact thereafter.
South Jordan, Utah-based Merit expects to fund the transaction through a combination of cash on hand and borrowings under its long-term credit facility. It anticipates closing the deal during the fourth quarter of this year.
Merit Chair and CEO Fred P. Lampropoulos said the transaction should strengthen the company’s electrophysiology and cardiac rhythm management business.
“We believe the financial profile of this acquisition is very attractive and is consistent with our goal of delivering sustainable, constant currency growth, improving profitability and strong free cash flow generation. We look forward to discussing this acquisition and our updated outlook for 2024 on our third quarter earnings report on October 30, 2024,” Lampropoulos said.
