Shares of San Clemente-based ICU Medical Inc. soared 36% after it announced the $2.35 billion acquisition of a Smiths Group PLC’s medical division.
ICU Medical (Nasdaq: ICUI) will be acquiring the Smiths Medical division, which includes syringe and ambulatory infusion devices, vascular access, and vital care products. When combined with ICU Medical’s existing businesses, the combined companies will be a leading infusion therapy company with estimated pro forma combined revenues of approximately $2.5 billion.
“Together, we will be a scaled global competitor and a US-based medical device company that increases the stability of the medical supply chain and can grow as clinical care models evolve,” ICU Medical Chief Executive Officer Vivek Jain said in a statement.
Under the terms of the agreement, Smiths will receive at closing 2.5 million newly issued shares of ICU Medical common stock, currently valued at approximately $500 million, and $1.85 billion in cash along with ICU Medical assuming certain liabilities.
The companies said the transaction was superior to the existing proposed sale of Smiths Medical to Trulli Bidco Limited.
Shares of ICU skyrocketed 36% to $280.65 and a $6 billion market cap.
Smiths’ shares climbed 2.6% to 1,459 pence and a 5.8 billion pound market cap.