Don't look now, but Abbott Labs (NYSE: ABT ) is about to buy itself a bit of growth.
On Monday, the Abbott Park, Ill.-based medical products giant announced that it has agreed to buy privately held medical device-maker IDEV Technologies for $310 million, net of cash and debt. In return, it will gain IDEV's portfolio of products that include, importantly, the SUPERA Veritas self-expanding nitinol stent system, used for opening blocked blood vessels. Approved for use in Europe, SUPERA Veritas has only limited approval for use in the U.S. but is in the process of seeking FDA approval for expanded usage.
Chuck Foltz, Abbott senior vice president for vascular products, said in a statement that "the acquisition of IDEV Technologies will expand and complement Abbott's existing peripheral technology portfolio of guidewires, balloon dilatation catheters, and stents, making it one of the most comprehensive and competitive portfolios in the industry."
A private company that is not required to disclose its financials, as of late last year, IDEV was not believed to be profitable. The company is on record, however, as saying it is experiencing "accelerated revenue growth." As for Abbott, IDEV's soon-to-be new parent earned $6.1 billion last year and is expected to grow earnings at close to 12% annually over the next five years.