A company that began life in the pharmaceutical sector is venturing forth into devices in its quest to become more of a diversified health-care company.
Chadds Ford, Pennsylvania-based Endo Pharmaceuticals
Endo projected that 2011 revenue for the combined company would be $3 billion with $1 billion in earnings before interest, tax, depreciation and amortization (EBITDA). The acquisition would add about 60 cents per share to Endo's 2012 adjusted diluted earnings per share once it closes, the company estimated. Endo also expects to get at least $50 million in cost synergies by 2013. The combined company would also have a total of 4,000 employees. AMS employs 1,200 people in nine countries, according to its website. Its first product -- an artificial urinary sphincter implant -- came out in 1972 and the company went public in 2000.
"Through the acquisition of AMS, we will gain scale in devices and services, and will be positioned as a leading provider of health care solutions in the field of pelvic health, with a full spectrum of product offerings ranging from pharmaceuticals to medical devices," said Dave Holveck, president and CEO of Endo, in a statement. In 2010, Endo bought HealthTronics, which among other things makes a full line of urology equipment and products, including lithotripters and surgical lasers for treatment of BPH.
The transaction needs to be approved by AMS shareholders and is expected to close in the third quarter of 2011.
"I believe that the two will be a great strategic fit, with AMS building on Endo's existing devices & services segment and allowing our management and employees to accelerate the growth of our business to improve the quality of life for a growing number of men and women," said Anthony Bihl, president and CEO of AMS, in a statement.
