Healthcare M&A Transactions

Walgreen Co. and New York-based drugstore chain Duane Reade Holdings, Inc. today announced a definitive agreement under which Walgreens will acquire Duane Reade from affiliates of Oak Hill Capital Partners in a cash transaction for a total enterprise value of $1.075 billion, which includes the assumption of debt.
Cerner Corporation (Kansas City, MO) reached an agreement to acquire IMC Health Care Inc (Jacksonville, FL), a provider of employer sponsored on-site health centers. The deal will expand Cerner's employer health initiatives, such as on-site employer health centers, pharmacies and wellness programs. IMC Health Care currently serves 15 employer clients and operates 23 employee health centers across the United States. The acquisition is expected to close in Q1 2010 and will not have a material impact on Cerner's 2010 financial results.
Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, announced today that it has sold its businesses providing respiratory therapy and home medical equipment, and infusion therapy to a subsidiary of Lincare Holdings Inc. (Nasdaq: LNCR) in an all-cash transaction. Included in the transaction are approximately forty locations in seven states providing respiratory/HME and/or infusion therapy. Moving forward, Gentiva's business will consist primarily of home health and hospice services targeted to the senior population.
Senior Care Centers of America, based in Trevose, PA, acquired Valley Crest Adult Day Care of Wilkes Barre, PA. Senior Care Centers of America is the premier provider of adult day health services in the United States with a total of 21 centers in New Jersey, Pennsylvania, Connecticut and Mississippi.
Diabetes device maker Home Diagnostics Inc. (HDI) has agreed to a $215 million buyout from Japanese medical device maker Nipro, it announced Wednesday. The deal will allow Nipro to expand its diabetes-related business.
Restorative Health Care of San Antonio (RHC) acquired all shares of Homestyle Specialty Nursing Care, Inc of Corpus Christi in a cash transaction. Homestyle Specialty Nursing Care, Inc. is a Medicare certified home health agency licensed to operate in 21 counties of the Texas gulf coast.
Diabetes device maker Home Diagnostics Inc. (HDI) has agreed to a $215 million buyout from Japanese medical device maker Nipro. The deal will allow Nipro to expand its diabetes-related business.
Quality Systems Inc (QSI) (Irvine, CA), a provider of healthcare information systems and connectivity solutions, entered into an agreement to acquire Opus Healthcare Solutions Inc (Austin, TX). The acquisition will be integrated with the assets of Sphere Health Systems Inc, which were acquired in August 2009. Both companies are developers of software and services for the inpatient market and will become part of NextGen Healthcare Information Systems (Horsham, PA), QSI’s wholly owned subsidiary
The assets of Verify Solutions were acquired by HMS Holdings Corp. (NASDAQ:HMSY), a leader in coordination of benefits and program integrity services for government healthcare programs. The acquisition allows HMS to provide services in the employer-based market with valuable new services that fit well with their mission to help control healthcare costs.”
Linden LLC (Chicago, IL), a healthcare private equity firm, acquired Hycor Biomedical Inc (Garden Grove, CA) from Agilent Technologies (Santa Clara, CA). Hycor develops, manufactures and markets in vitro diagnostic products for the global allergy, autoimmune and urinalysis markets. Terms of the agreement were not disclosed.
BioScrip, Inc. announced it has signed a definitive agreement to acquire Critical Homecare Solutions (“CHS”), a leading provider of home infusion and home health agency services to patients suffering from chronic and acute medical conditions. Under the terms of the transaction, BioScrip will pay an aggregate of $343.2 million through a combination of cash and stock. In addition, the Company will also issue 3.40 million warrants with a $10.00 exercise price and five-year term to CHS shareholders. The combination of BioScrip and CHS will create an industry leading provider consisting of specialty pharmacy, home infusion and home health care services from 110 locations nationwide.
Medco Health Solutions Inc (Franklin Lakes, NJ) acquired genetic testing services company DNA Direct (San Francisco, CA), a privately held company. DNA Direct provides services to physicians, health insurance companies and patients to help improve understanding of genetic medicine and which tests may or may not be appropriate for particular patients.
HealthTech Holdings Inc (Nashville, TN), a healthcare technology holding company and parent of Healthcare Management Systems Inc® (HMS), acquired MEDHOST (Addison, TX), a provider of emergency department information systems. The companies will develop an integrated emergency department system for the HMS enterprise-wide solution designed for community hospitals. MEDHOST will continue to provide highly targeted and specialized emergency department systems for large community and tertiary hospitals.
WPI Holdings d/b/a Woodbury Products (“Woodbury”), a portfolio company of HealthEdge Investment Partners, LLC (“HealthEdge”), announced today that it has completed the acquisition of two companies, the Continence Connection and DHP Home Delivery. Woodbury is a direct to consumer distributor of high quality incontinence and other related healthcare products.
Univita Health, an organization focused on providing the full range of services and support needed to enable a home-centered approach to independent aging, announced the acquisition of leading home care provider Atenda Healthcare Solutions, Inc. and its affiliated companies, including Florida Home Medical Equipment, Inc.
ActivStyle, a Riverside Co. portfolio company focused on incontinence products, has acquired Tampa, Fla.-based Advocate Medical Services, which provides catheters, incontinence and ostomy products in Florida and Texas. According to a release, Advocate’s core product line is intermittent catheters, and the company primarily serves neurogenic bladder patients who often suffer from spinal cord injuries or neural tube defects, and who have a lifelong need for catheters and related medical supplies.
Code Hennessy & Simmons LLC (CHS) (Chicago, IL) announced the sale of Suture Express (Lenexa, KS), a portfolio investment of CHS Private Equity V LP and Linden LLC, to Diamond Castle Partners (New York, NY), a private equity firm. Suture Express is a distributor of sutures, endo-mechanical products and other disposable medical and surgical products. CHS led the investment in Suture Express in August 2006 and partnered with Linden in a buyout from the company's founders.
Walgreen Co (Deerfield, IL) announced its intent to acquire the pharmacy business and other certain assets of The Katz Group dba Snyder's Drug Stores (Minnetonka, MN). Walgreen plans to close some of Snyder's 25 locations and operate the remaining stores under the Walgreen moniker. Financial terms were not disclosed.
Advantage RN has agreed to acquire TeamStaff Rx, TeamStaff’s travel nurse and allied healthcare staffing division. The divestiture will allow TeamStaff to focus on its core Government Solutions business. Advantage RN is a Cincinnati-based healthcare staffing firm which ranked 16th on Staffing Industry Analysts’ list of fastest growing U.S. staffing firms.
Sarnova has acquired Metropolitian Medical and Blue Ridge Medical in separate transactions. Sarnova, Inc., the nation's leading specialty distributor of health care products in the emergency medical services (EMS) and respiratory markets, announced today that it has acquired Metropolitan Medical, Inc. Metropolitan Medical is a medical products supplier serving the mid-Atlantic region. Sarnova plans to merge Metropolitan Medical with its Tri-anim brand, which specializes in respiratory and anesthesia products for the acute care market.
Quidel Corp (San Diego, CA) signed a definitive agreement to acquire privately held Diagnostic Hybrids Inc (Athens, OH) for approximately $130 million in cash. Diagnostic Hybrids manufactures and commercializes direct fluorescent in vitro diagnostic assays used in hospital and reference laboratories for a variety of diseases, including viral respiratory infections, herpes, Chlamydia and other viral infections, and thyroid diseases. Quidel plans to operate Diagnostic Hybrids as a separate subsidiary. The acquisition is subject to customary closing conditions and is expected to close in the first quarter of 2010.
Mediware Information Systems Inc (Lenexa, KS) finalized its acquisitions of Healthcare Automation Inc (HAI) and Advantage Reimbursement Inc (ARI), which provide software and outsourcing solutions for home health providers. The two companies were owned by a single ownership group based in Cranston, Rhode Island and Andover, Massachusetts, respectively. The purchase included a cash payment of $5.5 million, and an additional earnout payment of up to $1.5 million is possible based on an annual performance plan.
Johnson & Johnson (J&J) (New Brunswick, NJ) plans to acquire Acclarent Inc (Menlo Park, CA) for $785 million in cash. Acclarent is a provider of sinus-surgery technology. The deal, which is expected to close in Q1 2010, will depress J&J's 2010 earnings by three to four cents per share.
Abbott (Abbott Park, IL) signed a definitive agreement to acquire STARLIMS Technologies Ltd (Hollywood, FL), a provider of laboratory information management systems, for approximately $123 million in cash. Abbott will integrate STARLIMS into its existing portfolio of laboratory information management products, and will continue to support and expand the non-clinical market segments currently served by STARLIMS. STARLIMS offers advanced web-based applications to help laboratories store, retrieve and analyze clinical, managerial and administrative data. The transaction is expected to close in the first quarter of 2010.
Roper Industries Inc (Sarasota, FL), which provides engineered products and solutions for a broad customer base in end-markets including water, energy, transportation, education and healthcare, completed its acquisition of Verathon Inc (Bothell, WA), a provider of proprietary medical devices. Terms of the deal were not disclosed.
Microsoft Corp (Redmond, WA) plans to acquire Sentillion Inc (Andover, MA), a privately held company that specializes in software for the healthcare industry. Sentillion will continue to sell and support its products to new and existing customers, and will remain at its corporate headquarters in Andover, Massachusetts. Microsoft will invest in the long-term evolution of the combined portfolio of Sentillion and Microsoft health solutions. The acquisition is expected to close in early 2010. Financial terms were not disclosed.
Healthcare Trust of America Inc (Scottsdale, AZ) entered an agreement to acquire 52,300-square-ft Dallas LTAC Hospital (Dallas, TX) for approximately $27.35 million from a group of local physicians and Gulf States Health Services Inc (Dallas, TX). RehabCare Group (St. Louis, MO) manages the facility. Additional details were not disclosed.
Cortec Group, the New York-based private equity firm, has bought a majority stake in 180 Medical Inc., an Oklahoma City-based maker of single-use urologic catheters. Madison Capital Funding led the senior loan syndicate; terms of the transaction were not disclosed.
Hospira (Lake Forest, IL), a provider of clinical information and medication delivery technologies, acquired TheraDoc (Salt Lake City, UT), a clinical informatics company that develops hospital surveillance systems. Hospira will add TheraDoc's two leading products, Infection Control Assistant™ and Antibiotic Assistant™, to its expanding portfolio of medication safety and infection management products. As part of the agreement, Hospira acquired additional assets related to the TheraDoc business, including the headquarters in Salt Lake City, and the TheraDoc employees are now a part of Hospira. Financial terms were not disclosed.
Stryker Corp (Kalamazoo, MI) signed a definitive agreement to acquire privately held Ascent Healthcare Solutions (Phoenix, AZ), which reprocesses and remanufactures medical devices, for $525 million in an all cash transaction. Closing is conditioned on the expiration or termination of all applicable waiting periods pursuant to the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The board of directors of Stryker and the board of directors and shareholders of Ascent Healthcare Solutions have approved the transaction. The deal is expected to close by the end of 2009, and is expected to be neutral to Stryker’s 2010 earnings per share and accretive thereafter.
Swissray International Inc (East Brunswick, NJ), a manufacturer of direct digital Radiography (ddR) systems, announced that its operations have been acquired by a private Swiss Investor with a long term view towards growing Swissray's medical imaging brand. The acquisition included all assets and intellectual property, as well as contracts and inventory. Alex Rosenzweig was named as the company's new chairman. Terms of the deal were not disclosed.
RehabCare Group (St Louis, MO) completed its previously-announced, $570 million acquisition of Triumph HealthCare Corp (Houston, TX). Triumph Healthcare currently operates 20 LTACHs in seven states, with two hospitals scheduled to open by mid-2010. The combined organization has over 1,280 locations in 41 states, and is now the fourth largest post-acute hospital operator and the third largest LTACH provider in the U.S. Brock Hardaway, Triumph HealthCare president and COO, will lead the LTACH segment. He will report to Kevin Gross, RehabCare SVP of hospital operations. The merger was funded through a combination of committed bank financing, the net proceeds of the equity offering that closed on November 18, 2009, and cash on hand. The new company closed on a new senior secured credit facility consisting of a $450.0 million term loan B facility and a $125.0 million revolving credit facility.
Sarnova, a specialty distributor of healthcare products in the emergency medical services (EMS) and respiratory and markets comprised of Bound Tree Medical (Dublin, OH) and Tri-anim Health Services Inc (Sylmar, CA), acquired Metropolitan Medical Inc (Winchester, VA). Metropolitan Medical is a medical products supplier serving the mid-Atlantic region. Sarnova plans to merge Metropolitan Medical with its Tri-anim Health Services brand, which specializes in respiratory and anesthesia products for the acute care market. Terms were not disclosed.
Delaware Valley Surgical Supply (DVSS) (Marcus Hook, PA‎) completed its acquisition of the assets of the business formerly conducted by Medical Supply Corporation of New Jersey Inc. The independent distributor sold med/surg supplies and equipment throughout New Jersey, New York and Pennsylvania. DVSS is an independent distributor of med/surg supplies and equipment to physician offices in the Mid Atlantic States. Terms of the deal were not disclosed.
Hanger Orthopedic Group Inc (Bethesda, MD) acquired Creative Orthotics & Prosthetics Inc (Binghamton, NY), Custom Orthopedics of Wyoming (Casper, WY) and certain orthotics and prosthetics assets from the Hospital of the University of Pennsylvania (Philadelphia, PA). These acquisitions add patient care centers to existing markets in New York, Wyoming and Pennsylvania. Hanger owns and operates 671 patient care centers in 45 states and the District of Columbia.
Covidien (Mansfield, MA) completed the sale of its sleep diagnostics assets to Embla Systems (Broomfield, CO). Financial terms of the transaction were not disclosed. The sale included several products sold under the Sandman™ brand. The sale is consistent with Covidien’s strategy to streamline its portfolio and reallocate resources to its faster-growing, higher-margin businesses.
Madison Heights-based Residential Home Health, a home care services company, has acquired Edward Home Care from Edward Hospital in Naperville, Ill. Edward Home Care has provided home care services in the southwest suburbs of Chicago for 14 years. Terms of the transaction were not disclosed, but Edward Hospital will retain a minority interest in the Illinois operation.
Spire Corp. of Bedford, MA, said today it is divesting its hemodialysis catheter business in order to focus exclusively on making equipment for solar photovoltaic module manufacturing. Bard Access Systems is buying the catheter division.
Medline Industries Inc (Mundelein, IL) signed a definitive agreement to acquire the business and assets of SunChoice Europe Limited (Warrington, England) from Southern Cross Healthcare Group. SunChoice supplies incontinence, cleaning, janitorial, laundry, infection control, medical consumables, uniforms and patient handling equipment to over 900 nursing homes in England, Wales, Scotland and Northern Ireland. Under the terms of the agreement, approximately 46 employees will join Medline and the SunChoice name will be retired. Financial terms of the deal were not disclosed.
RG Respiratory, a provider of respiratory products and medications including oxygen and sleep related products was acquired in a private transaction. Terms of the transaction were not disclosed.
Abbott Laboratories Inc (Abbott Park, IL) plans to acquire Visiogen Inc (Irvine, CA) for $400 million in cash. The move will strengthen Abbott's ophthalmic portfolio and provide the company the next-generation accommodating intraocular lens technology to cure presbyopia for cataract patients. Intraocular lenses are implanted in a patient's eye after the removal of the natural lens that has become clouded by a cataract. The transaction is expected to close in the fourth quarter and will not impact Abbott's earnings outlook for 2009.
Walgreen Co acquired Rx Solutions Inc, a Lombard, IL- based provider of specialty pharmaceutical services, from PGMI Inc.
Healthland (Glenwood, MN), a provider of IT solutions to small community and critical access hospitals, completed its acquisition of American Healthnet (AHN) (Omaha, NE). This is Healthland's second acquisition in a year.
Residential Home Health, a home care services company, has acquired Edward Home Care from Edward Hospital in Naperville, Ill. Edward Home Care has provided home care services in the southwest suburbs of Chicago for 14 years. Terms of the transaction were not disclosed, but Edward Hospital will retain a minority interest in the Illinois operation.
IntriCon Corporation (St. Paul, MN), a designer, developer, manufacturer and distributor of body-worn medical and electronics devices, acquired Datrix Inc (Escondido, CA) for approximately $2.5 million. Datrix is a supplier of cardiac diagnostic monitoring (CDM) devices, sold to leading medical OEMs. The total purchase price consists of $1.225 million cash paid at closing; a $1.05 million subordinated note payable over three years; and 75,000 shares of IntriCon common stock.
Omnicare, Inc. (NYSE:OCR), a leading provider of pharmaceutical care for the elderly, announced the acquisition of specialty pharmaceutical services provider, Advanced Care Scripts, Inc. Based on the quarter ended March 31, 2008, Advanced Care Scripts’ revenues are running at an annualized rate of approximately $212 million. The transaction is expected to be modestly accretive to Omnicare’s earnings in 2008, with accretion expected to increase in 2009 and beyond.
Cardinal Health Inc's (Dublin, OH) board of directors approved the spinoff of CareFusion Corporation through a pro rata distribution of at least 80 percent of the shares of CareFusion common stock to Cardinal Health shareholders, with Cardinal Health retaining the remaining shares. The board concluded that, as separate companies, Cardinal and CareFusion will benefit from enhanced management focus and sharper strategic vision, as well as improved opportunities to make investments in their respective growth areas.
Waud Capital Partners (“WCP”) announced that its portfolio company, CarePoint Partners (“CarePoint”), has acquired The Infusion Network of Louisiana, Inc. d.b.a. HCS Infusion Network (“HCS Infusion Network”), a company owned by Praxair Healthcare Services, Inc. (“PHS”). Based in Baton Rouge, HCS Infusion Network provides a full array of infusion services at home and throughout Louisiana via its network of six ambulatory infusion centers. HCS Infusion Network will operate under the CarePoint Partners name with the same team of infusion professionals.
ICU Medical Inc (San Clemente, CA), a low-cost manufacturer of safe medical connectors, custom medical products and critical care devices, entered into a definitive purchase agreement to acquire the commercial rights and physical assets of Hospira Inc's (Lake Forest, IL) critical care product line for approximately $35 million in cash. The company has been manufacturing the majority of Hospira's critical care offerings for over four years. The deal creates a long-term growth opportunity for ICU Medical and positions the company to improve gross margins and earnings by controlling all aspects of the critical care product line.
Arcadia Resources, Inc. a leading provider of home care, medical staffing, and pharmacy services under the Arcadia HealthCare(SM) brand, today announced the sale of its JASCORP retail pharmacy management software business. Arcadia sold the JASCORP services and systems, including dispensing and billing software used by pharmacies in 39 states and Puerto Rico, to a leading pharmacy benefits management company for $2.2 million in cash.
Doctor Diabetic Supply, Inc., one of the nation's leading distributors of diabetic testing supplies and related products, is proud to announce that it has acquired Diabetes Source Rx, a Lafayette-LA based distributor of diabetes supplies. The acquisition is an important step in the execution of Doctor Diabetic Supply's growth strategy. Customers from Diabetes Source Rx will be easily integrated into the Doctor Diabetic Supply family of clients, given the similarities in the service models of both companies.
Watson Pharmaceuticals, Inc. today announced that it has entered into a definitive agreement to acquire privately held Arrow Group for $1.75 billion in cash and stock. The combination of Watson and Arrow will result in a global pharmaceutical company with over $3 billion in revenue, commercial operations in over 20 countries, and a robust product portfolio and pipeline. Watson expects the transaction to close in the second half of 2009, and be accretive to cash earnings per share in 2010 before synergies.
HealthTronics Inc (Austin, TX) plans to acquire Endocare Inc (Irvine, CA) for about $16 million. Endocare makes medical devices for the treatment of prostate cancer.
SonoSite Inc (Bothell, WA) signed an agreement to acquire CardioDynamics International Corporation (San Diego, CA) in exchange for $1.35 per share in cash. The aggregate transaction value will be approximately $10.0 million, or $12.3 million net of cash and debt. The acquisition is part of a strategic initiative that moves SonoSite forward toward its goal of adding clinical value and reducing healthcare system costs in cardiovascular disease management.
CVS Caremark (Woonsocket, RI) acquired 11 Kerr Drug Stores in Charleston, South Carolina, seven of which will remain open under the CVS banner. The remaining four locations will be closed and consolidated into nearby CVS stores. CVS currently has more than 180 stores in South Carolina, as well as more than 280 stores in North Carolina. Twenty-three of its stores are located in the Charleston market.
Premier Inc (Charlotte, NC) acquired Phase 2 Consulting (P2C) (Salt Lake City, UT), a provider of consulting services to hospitals and health systems and a division of RehabCare Group (St. Louis, MO). The deal will complement Premier Consulting Solutions (PCS), and provide resources to help meet the growing demand for PCS’ services. In 2008, PCS added more than 60 new customers, and 225 new customer engagements. P2C offers expertise and consulting capabilities in the areas of revenue cycle improvement, including RAC (Recovery Audit Contractor) readiness and charge capture, strategic planning and service line analysis. Terms of the deal were not disclosed.
ev3 Inc (Plymouth, MN) signed a definitive agreement to acquire Chestnut Medical Technologies Inc (Menlo Park, CA), a privately held company focused on developing minimally invasive therapies for interventional neuroradiology. ev3 will acquire 100 percent of the equity interests of Chestnut for total upfront consideration of $75 million paid upon closing, 30 to 40 percent of which is payable in cash, with the remaining portion payable in ev3 common stock. An additional milestone-based contingent payment of up to $75 million is payable in a combination of cash and ev3 common stock upon the receipt of FDA (Rockville, MD) premarket approval of the Pipeline device. ev3 will finance the upfront cash payment due upon closing through cash on hand.
Microsoft Corp signed an agreement with Merck & Co Inc (Whitehouse Station, NJ) to acquire certain assets of Rosetta Biosoftware, a business unit of Rosetta Inpharmatics LLC, a wholly owned subsidiary of Merck & Co. Microsoft will be able to incorporate genetic, genomic, metabolomic and proteomics data management software into the Microsoft Amalga Life Sciences platform for enhanced translational research capabilities. The deal will close at the end of June 2009.
Hanger Orthopedic Group Inc (Bethesda, MD) acquired Northwest Prosthetic & Orthotic Clinic (Seattle, WA) and Inline Orthotic and Prosthetic Systems (La Mesa, CA), adding patient care centers to existing markets in Washington and California. Additional details were not disclosed. Hanger Orthopedic Group is a provider of orthotic and prosthetic patient care services. Hanger is the market leader in the U.S., owning and operating 675 patient care centers in 45 states and the District of Columbia.
Express Scripts (Maryland Heights, MO) plans to acquire WellPoint Inc's (Indianapolis, IN) NextRx subsidiary in the second half of 2009 after it completed the required antitrust waiting period. Express Scripts expects to use a mixture of cash and up to $1.4 billion of its common stock to close on the $4.67 billion deal that will add $1 billion to earnings before interest, taxes, depreciation and amortization (EBITDA) once it is fully integrated.
Air Products (Allentown, PA) sold three of its U.S. healthcare businesses to Landauer-Metropolitan Inc (LMI) (Mount Vernon, NY), the largest provider of durable medical equipment, respiratory and infusion services in the northeast. The sale includes Air Products' ownership interests in certain of the companies previously operated as part of the Air Products Healthcare LLC Group, namely Genox Homecare, serving Connecticut; Mid-Atlantic Healthcare, serving Maryland, Washington, D.C., and northern Virginia; and Young's Medical Equipment, serving eastern and central Pennsylvania and New Jersey. These businesses included 220 employees, 15 locations and more than 36,000 patients. Terms of the deal were not disclosed. Air Products expects to sell its remaining U.S. healthcare businesses by the end of its fiscal year in September 2009.
Air Products (Allentown, PA) sold all of its U.S. home infusion therapy services business and some elements of its respiratory and home medical equipment business to OptionCare Enterprises Inc, a subsidiary of Walgreen Co (Deerfield, IL). The deal includes Air Products' ownership interests in certain companies previously operated as part of the Air Products Healthcare LLC Group, including the home infusion therapy business of American Homecare Supply, Georgia (serving Atlanta and northern Georgia); Ultra Care and Dependicare (Chicago metropolitan area); Rx Pharmacy Services and Mosso's Medical Supply Company (western Pennsylvania and Pittsburgh metropolitan area); Collins I.V. Care (Connecticut); and Air Products Healthcare Pharmacy (Lehigh Valley, Philadelphia metropolitan area and southern New Jersey).
WM Healthcare Solutions Inc (WMHS), a subsidiary of Waste Management Inc (Houston, TX), purchased substantially all of the assets of PharmEcology® Associates LLC (Milwaukee, WI), which provides pharmaceutical waste management consulting services to the U.S. healthcare industry through seminars, on-site risk assessments, and other custom consulting services, in addition to the PharmE® Waste Wizard and PharmE® Inventory Analysis. The deal is part of Waste Management’s strategy to expand its healthcare waste disposal services offered to hospitals and healthcare facilities.
Medical Specialties Distributors (Stoughton MA) acquired Innovative Medical Systems (Atlanta, GA), a distributor of infusion products, for an undisclosed price. Medical Specialties intends to combine its national scale supply channel with Innovative Medical Systems’ expertise in infection control and oncology in the southeast. Innovative Medical's founder and president, Chris Good, will become president of Medical Specialties' Outpatient Infusion Systems, a provider of ambulatory infusion products to acute care and alternate site facilities.
Express Scripts (Maryland Heights, MO) signed a definitive agreement with WellPoint Inc (Indianapolis, IN) to acquire WellPoint's NextRx (Bothell, WA) PBM subsidiaries for $4.7 billion. Under the agreement, Express Scripts will provide its services to WellPoint thought a 10-year contract. NextRx' services will be provided through Express Scripts’ platform and products. WellPoint will retain control of medical policy, formulary and integrated disease management. The move is expected to allow both companies to provide more integrated and cost-effective medical and drug benefits to members. Subject to customary closing conditions, the deal is slated to close in the second half of 2009.
DiaMed USA, LLC (Canton, OH) acquired Caldwell-Bloor (Mansfield, OH) for undisclosed financial terms. This acquisition is the latest in DiaMed's strategic growth moves. In 2008 DiaMed USA merged with the physician division of Community Surgical Supply (Toms River, NJ) and has expanded its business to include distribution facilities in OH, TN and NJ. DiaMed USA offers a full-range of high quality medical equipment, supplies and pharmaceuticals to some of the largest physician practices throughout the Midwest and East Coast. DiaMed is a member of National Distribution & Contracting (NDC) (Nashville, TN), has developed nationwide purchasing power and offers ProAdvantage, a high quality private label, at lower costs.
Merit Medical Sciences Inc.(South Jordan, UT) closed on acquisitions of respiratory stent maker Alveolus Inc. (Charlotte, NC) and two products from Biosearch Medical Products Inc. (Somerville, NJ). Merit paid a total of $20.6 million in the deals including about $19 million for Alveolus, which makes stents used in surgeries on the esophagus, parts of the respiratory system, and the bile system. The two Biosearch products are intended for the gastroenterology market. Alveolus' revenue is estimated at at about $8.2 million over the last 12 months. It estimated that the worldwide market for Alveolus' products is worth more than $200 million.