San Clemente-based ICU Medical Inc. (Nasdaq: ICUI) has completed its largest-ever acquisition, for fellow device maker Smiths Medical in a $2.4 billion cash and stock deal.
ICU, a maker of devices for IV infusion therapy, last September announced its intent to buy Smiths Medical, a Minneapolis-based subsidiary of Smiths Group PLC (LSE: SMIN.L).
Smiths Medical manufactures devices for infusion therapy, including syringes, vascular access and vital care products.
The two companies began talks on a possible deal in 2018. The sale’s closing was completed ahead of schedule, the firms said.
“We are pleased that Smiths Medical is now part of ICU Medical, and we welcome our new Smiths colleagues to the ICU team,” ICU Medical Chief Executive Vivek Jain said in a statement earlier this month. “The addition of Smiths Medical fits well with ICU Medical’s existing business and creates a scaled U.S.-based global competitor that increases the stability of the medical supply chain and can grow as clinical care models evolve.”
IV Therapy Companies
Smiths Medical employs some 7,500 people at its manufacturing operations in the U.S., the U.K., Mexico and Italy.
According to Smiths Medical CEO Paul Keel, the completion of the sale occurred “ahead of schedule, another example of the accelerated pace at which [the company is] now moving.”
The deal boosts the product line of ICU Medical, with a $4.4 billion market cap at press time.
Like Smiths, it also focuses on developing devices or IV infusion therapy, including IV systems, consumables, and critical care monitoring systems.
Intravenous (IV) therapy is the administration of medicines or fluids directly into a patient’s vein.
After ICU Medical purchased Hospira Infusion Systems from Pfizer in 2017, a $1 billion buy, it became “the only company to focus exclusively on IV therapy across the continuum of care,” according to the company’s 2020 annual report.
ICU Medical has 253 employees in Orange County, earning it a No. 17 in the Business Journal’s medical device makers list last year. It reports 15,000 employees worldwide
In its most recent report, third-quarter revenue increased 5.5% to $336.1 million. ICU Medical plans to announce its 2022 guidance when it reports fourth-quarter earnings in February.
Combined Co. Predictions
When it announced the deal last September, executives said the combined firms will have a “a more robust global reach” with pro-forma revenue of $2.5 billion.
“Together, we will be a scaled global competitor and a U.S.-based medical device company that increases the stability of the medical supply chain and can grow as clinical care models evolve,” ICU Medical CEO Jain said last September. “From an economic perspective, we believe we have presented a well-structured offer that considers the existing offer, minimizes risk, and offers upside
to all stakeholders. We look forward to serving more customers as we continue to bring clinical and economic value to the marketplace.”
Smiths CEO Keel added: “[The sale] is our largest portfolio move in over a decade and positions us even more strongly to access the growth available in our industrial technology core.”
