Merit Medical Systems (Nasdaq:MMSI) announced today that it completed its acquisition of Cook Medical’s lead management portfolio.
South Jordan, Utah-based Merit announced its agreement to buy the portfolio for $210 million in September. Merit funded the acquisition through a combination of cash on hand and borrowings under a long-term credit facility.
The Cook 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. In addition to this portfolio, Merit’s own electrophysiology and CRM portfolio includes steerable and other specialty technologies that help electrophysiologists access the heart to diagnose and deliver devices to treat cardiac rhythm disorders.
Merit expects the acquisition to contribute revenues between $4 million and $6 million from now 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. The business generated approximately $37 million in revenue over the 12-month period ended Dec. 31, 2023.
“We are pleased to announce the completion of this important acquisition,” said Fred P. Lampropoulos, Merit’s chair and CEO. “We are excited to welcome the talented team from Cook Medical’s lead management business. We believe this acquisition will strengthen our fast-growing, high-margin electrophysiology and CRM business, as well as enhance our position in the global cardiac intervention market.”
Wells Fargo acted as financial advisor to Merit, and Bank of America Securities acted as financial advisor to Cook Medical. Parr Brown Gee & Loveless served as legal advisor to Merit. Ice Miller served as legal advisor to Cook Medical.
