MA Firm Pays $24M for St. Paul Blood Storage Co.
A Massachusetts company paid $24 million to acquire St. Paul-based Hemerus Medical, which develops technologies for collecting, processing, and storing blood products.
The buyer is Braintree-based Haemonetics Corporation, which bills itself as a provider of “blood management solutions” to blood collectors and hospitals.
Haemonetics said that it paid $23 million in cash when the deal closed on Tuesday and previously paid $1 million.
According to Haemonetics, the U.S. Food and Drug Administration (FDA) recently granted approval for Hemerus’ signature product—the SOLX red blood cell storage system—to be marketed for eight-hour storage of whole blood.
Haemonetics said that it will pay an additional $3 million when the FDA grants additional approvals for the SOLX system, and it will pay up to $14 million in conjunction with future sales of SOLX-based products.
Hemerus recently received European approval to market the SOLX system as a solution that provides 56 days of storage for red blood cells. The company claims that current conventional red blood cell storage solutions provide only 42 days of storage.
Haemonetics said that SOLX “brings benefits to blood center customers that are not available today,” and Hemerus CEO Michael Spearman told Twin Cities Business that the SOLX system is the “first new storage solution in red cells in the blood banking industry in over 25 years.”
In 2000, Hemerus spun out of a company called Porous Media, which Golden Valley-based Pentair, Inc., purchased in 2007. Spearman said that Hemerus has long intended to eventually sell the company.
According to Spearman, Hemerus has “less than 20” employees, all of whom will initially be retained by Haemonetics. Within the next year, however, they will transition out of the company as it integrates Hemerus’ technology into its other products.
“The addition of Hemerus’ SOLX collection system complements the portfolio of whole blood collection, filtration, and processing product lines we recently acquired,” Haemonetics President and CEO Brian Concannon said in a statement. “We look forward to bringing this new science for red cell storage to our blood center customers as they seek ways to lower the costs of collecting blood and blood components.”