St. Jude Medical Pays $200M for NeuroTherm
NEW YORK (The Deal) -- St. Jude Medical Inc.
The parties unveiled a definitive agreement Monday in which St. Jude will pay about $200 million in cash for the privately held company. NeuroTherm is based in Wilmington, Mass., and has offices in London, Amsterdam and Germany.
"NeuroTherm's radiofrequency ablation products are an ideal complement to St. Jude Medical's chronic pain portfolio, providing our global sales force with additional interventional pain therapies that offer potential relief to patients earlier in the chronic pain continuum," St. Jude Chief Operating Officer Michael Rousseau said in a statement. The acquisition will make St. Jude "the only medical device manufacturer with both RFA and spinal cord stimulation," he added.
The NeuroTherm acquisition is expected to add about $10 million to $15 million to St. Jude's 2014 sales. It would be neutral to consolidated earnings per share in 2014 and accretive thereafter on a GAAP basis, the company projects.
The deal is expected to close in the third quarter, dependent on customary closing conditions.
NeuroTherm is a portfolio company of Linsalata Capital Partners, a Cleveland-based private equity firm. Linsalata provided a recap for NeuroTherm in February 2011. Also that year, NeuroTherm acquired ArthroCare's interventional spine procedure lines Parallax for verebroplasty and Contour for cavity creation.
Chronic pain affects 1.5 million people worldwide, with 230 million diagnosed in the U.S. in 2013 with acute and chronic pain. About 8% of those individuals received interventional therapy.