Merit Medical Acquires Pressure-Assisted Hemostatic Devices From Datascope Corp.
Merit Medical Systems, Inc. (Nasdaq:MMSI), a leading manufacturer and marketer of proprietary disposable devices used primarily in cardiology, radiology and endoscopy, today announced that it has acquired from Datascope Corp. the SAFEGUARD(R) Pressure Assisted Device, which assists in obtaining and maintaining hemostasis after a femoral procedure, and the AIR-BAND(TM) Radial Compression Device, which is indicated to assist hemostasis of the radial artery puncture site while maintaining visibility.
Both products have FDA and CE clearance. The SAFEGUARD currently generates approximately $7 million of revenue, and the AIR-BAND has not yet been formally launched.
Financing for the transaction was provided by Wells Fargo Bank with an expansion of Merit's existing credit facility by $40 million. The expanded line will provide funds for the transaction as well as additional working capital.
"A major initiative for Merit is in the area of radial procedures, which are growing rapidly in the United States due to lower costs, improved mobility and shorter hospital stays," said Fred P.
Lampropoulos, Merit's Chairman and CEO. "In many areas of the world, including Scandinavia, France, Japan and Canada, radial procedures often account for more than 50% of overall procedures. We believe that the United States could very well achieve those levels over the next several years."
"Merit has focused on building a complete line of products for the radial approach, including catheters with specific shapes and uniquely designed sheaths," Lampropoulos continued. "We also have several new products in various stages of design and development."
"We plan to introduce the AIR-BAND at the upcoming VIVA and TCT conferences," Lampropoulos added. "We believe the product line, which is covered by a substantial patent portfolio, is a perfect fit for Merit and fills a gap that existed in our product offering."
CONFERENCE CALL
Merit will host a conference call to further discuss the details of this acquisition and the acquisition of the assets of Radial Assist today, October 7, 2013, at 4:00 p.m. Eastern (3:00 p.m. Central, 2:00 p.m. Mountain, and 1:00 p.m. Pacific). The domestic phone number is
(877) 941-9205 and the international number is (480) 629-9771. A live webcast as well as a rebroadcast of the conference call can be accessed through the Investors page at www.merit.com.