Medical device company C.R. Bard (NYSE: BCR ) plans to acquire Medafor, a privately held developer and supplier of plant-based hemostatic agents such as Arista MPH Hemostat, which can control bleeding in patients for whom more conventional methods cannot be used, the company announced today.
The transaction structured as a merger includes a purchase price of $200 million, along with additional contingent payments of up to $80 million through June 30, 2015.
C.R. Bard says acquiring Medafor gives it the opportunity to expand in the global market for surgical hemostats, which is over $1.4 billion. C.R. Bard expects the transaction to add approximately 1% to revenue growth in 2014.
Bard Chairman and CEO Timothy Ring was quoted in the press release as saying the Medafor acquisition allows C.R. Bard to "continue to shift the mix of the portfolio to improve the organic growth profile of the business for the longer term," noting that the Arista hemostat "provides a great alternative to other commercially available hemostats while providing strong synergy with our Progel Sealant technology and sales channel."