Covidien to buy ev3 for $2.6 billion to expand into vascular devices market
01 Jun 2010
Covidien Plc, one of the world's largest healthcare devices and disposables maker, today said it would acquire medical interventional devices maker ev3 for $22.50 per share in cash, for a total of $2.6 billion, net of cash acquired.
Formerly Tyco Healthcare, Covidien became an independent publicly traded company in 2007 after being spun-off from Tyco International.
It has grown through acquisitions, having bought out more than 50 companies between 1996 and 2002. With 2009 revenues of $10.7 billion, Covidien has emerged a global healthcare products company that manufactures, distributes and services a diverse range of industry-leading product lines in three segments: Medical Devices, Pharmaceuticals and Medical Supplies.
ev3, which reported revenues of $449 million and net profit of nearly 42 million, develops, manufactures, and markets a range of products that include stents, atherectomy plaque excision products, thrombectomy and embolic protection devices, percutaneous transluminal angioplasty balloons, and other procedural support products for the peripheral vascular market. It markets its products directly in the US, Europe, Canada, and Australia and sells it through distributors in other international markets.
The ev3 acquisition will expand Covidien's presence in the market for vascular and neurovascular diseases.
Dublin, Ireland-headquartered Covidien's $22.50 a share is a 19-per cent premium to Plymouth, Minnesota-based ev3's closing price on 28 May.
