LeMaitre Vascular Inc. said it acquired Admedus Ltd.'s biologic patch business for $15.5 million.
The payment includes $14.2 million paid at closing and $1.3 million in two post-closing installments. Australia's Admedus will also potentially receive an additional $7.8 million based upon the performance of the acquired business as well as other milestones.
The acquired patches are marketed under the brands of CardioCel and VascuCel. CardioCel is a medical material used to repair congenital heart deformities and more complex heart defects, and VascuCel is a type of collagen scaffold used for cardiac repairs and reconstructions. Annualized 2019 sales of these two product lines totaled $7.1 million, mostly generated in the U.S. and Europe.
The two companies have signed licensing agreements for the tissue processing technology to CardioCel and VascuCel. Admedus will also continue to manufacture the products for up to three years while LeMaitre Vascular transitions manufacturing to its U.S. headquarters. LeMaitre Vascular will not take ownership of the Admedus factory in Perth, Australia.
LeMaitre Vascular said it will give guidance on the acquisition impact on revenue, operating income and EPS for 2019 in the third-quarter earnings call Oct. 23.
Burlington, Mass.-based LeMaitre Vascular designs and commercializes medical devices for treating peripheral vascular disease, a blood circulation disorder that causes the blood vessels outside the heart and brain to narrow, block or spasm.