Merit Medical Systems, a healthcare products manufacturer based in South Jordan, Utah, recently announced that it will purchase GE Healthcare’s Thomas Medical Products for $167 million in cash. Thomas Medical Products, a device manufacturer based in Malvern, Pennsylvania, produces catheter technology for vascular access.
According to a press release by Merit Medical, the deal is expected to close before the end of 2012. The deal may boost the sales (on a pro forma basis) at Merit Medical by $420 million. Out of this amount, Thomas Medical will contribute $37 million. According to the company profile on its website, Thomas Medical was acquired by GE Healthcare in 2008. Merit Medical plans to fund this purchase by increasing its credit at Wells Fargo Bank.
In a prepared statement, Merit CEO and chairman Fred Lampropoulo said, "We believe this transaction will help expand our market presence into new product categories, particularly in interventional cardiology.” He continued, “A majority of cardiac rhythm access procedures utilize products of the nature manufactured by Thomas Medical.”
Tom Gentile is the CEO of GE Healthcare Systems. According to Gentile, the divestiture will give Thomas Medical the ability to maximize opportunities in the vascular access market. In addition, this will allow GE Healthcare’s cardiovascular division to maintain its research focus.