MN Med-Tech Co. Sold For $262M; Stock Climbs 45%
Medical device developer Rochester Medical announced Wednesday that it will be acquired by Murray Hill, New Jersey-based C. R. Bard, Inc., for $262 million.
Stewartville-based Rochester Medical is the second Minnesota medical device company that C. R. Bard has struck a deal to buy in the last couple of weeks. It announced plans to purchase Minneapolis-based Medafor for $200 million on August 19.
C. R. Bard said it will acquire Rochester Medical for $20 per share, which represents a 37 percent premium over Rochester Medical’s average closing price during the 90 trading days leading up to Tuesday.
Following the announcement of the sale, Rochester Medical’s stock climbed nearly 45 percent to $19.91 on Wednesday.
Although the deal remains subject to closing conditions, C. R. Bard expects it to close in the fourth quarter of 2013.
Rochester Medical develops, manufactures, and markets disposable medical catheters and devices for urological and continence care applications.
“Rochester’s double-digit growth product portfolio, including their customer access programs, is a key building block in our strategy to access faster growing markets over the long-term,” C.R. Bard CEO Timothy Ring said in a statement. “We believe that strengthening our position in the home care market, and specifically the large and fast-growing intermittent self-catheter segment, is strategically important at this time.”
It was not disclosed how the sale will affect Rochester Medical’s employees or its executives. Wednesday calls to both companies inquiring about further details were not immediately returned.
“Our agreement with Bard represents an attractive valuation for Rochester Medical shareholders, and as an all cash offer, provides liquidity for shareholders,” Rochester Medical CEO and President Anthony Conway said in a statement.
In 2012, Rochester Medical reported about $61 million in revenue, up roughly 15 percent from the previous year.
The Rochester Medical deal marks C. R. Bard’s third Minnesota med-tech acquisition in recent years; in addition to the Medafor deal, it paid $225 million for Maple Grove-based Lutonix, Inc. in 2011.
C. R. Bard is a multinational developer, manufacturer, and marketer of medical technologies. The company reported nearly $3 billion in revenue at the end of 2012, up about 2 percent from the previous year.