Pfizer to sell global infusion therapy business to ICU Medical for $1 bn
07 October 2016
US pharmaceutical giant Pfizer Inc yesterday struck a deal to sell its global infusion therapy business called Hospira Infusion Systems to ICU Medical Inc for $1 billion in cash and stock.
Under the terms of the deal, ICU Medical will pay $600 million in cash and nearly $400 million in newly issued shares, giving Pfizer a stake of about 16.6 per cent in the company.
Pfizer will also get the right to nominate one director to the company's board.
The infusion pump business is part of Illinois-based Hospira, which Pfizer acquired last year for $17 billion.
The Hospira Infusion Systems business, which includes IV pumps, solutions, and devices, are computerised medical devices that deliver fluids, such as nutrients and medications, into a patient's body in controlled amounts.
The acquisition complements ICU Medical's existing business by creating a company that has a complete IV therapy product portfolio from solutions to pumps to non-dedicated infusion sets, and gives the company a significantly enhanced global footprint.
The merger will create a company with estimated combined revenues of around $1.45 billion.
John Young, group president of Pfizer Essential Health said, ''We are pleased that Hospira Infusion Systems is combining with ICU Medical, and we believe the combined company will be well positioned in the marketplace to deliver value to customers through its strong product portfolio and the expertise of colleagues from both companies.''
''By acquiring the Hospira Infusion Systems business, currently our largest single customer, we create a pure-play infusion business with the focus and scale to compete globally, eliminate our single customer concentration issue, and have a significant value creation opportunity as a much larger company. We look forward to serving more customers as we continue to bring clinical and economic value to the marketplace,'' said, Vivek Jain, ICU Medical's CEO.