Medical products company CareFusion Corp. has acquired infusion therapy disposables manufacturer Medegen, which makes needle-free intravenous products and access valves, in a $225 million cash transaction.
Medegen is an ideal strategic fit due to the complementary nature of our infusion product lines, R&D investments, and our focus on products that are backed by clinical evidence and differentiation, said CareFusion Chairman and CEO David Schlotterbeck, in an April 5 statement announcing the acquisition.
CareFusion, based in San Diego, said the deal is expected to close June 30 and to be neutral to earnings in the first year.
Schlotterbeck said Ontario, Calif.-based Medegen will add a new dimension to his company's existing infection-prevention portfolio and help CareFusion make additional inroads into the $2 billion global market for disposable IV sets. CareFusion is considered to be among the industry leaders in manufacturing the devices.
Charles Stroupe, chairman and CEO of Medegen, said that as part of CareFusion, the Medegen business will have an opportunity to grow faster because its products and technology will be available to an expanded customer base worldwide.
CareFusion was spun off in September from Dublin, Ohio-based Cardinal Health's clinical and medical products business. The acquisition is CareFusion's first since becoming an independent company.
The firm had $3.7 billion in sales and nearly $450 million of profit in fiscal 2009, ended June 30. It makes ventilators and respirators, neurological monitoring and diagnostic products, smart-pump IV systems, surgical instruments, and automated medication-dispensing systems.
CareFusion is a collection of more than 20 companies, including medical-pump maker Alaris Medical Systems of San Diego, that have been acquired over a period of 15 years by Cardinal Health.
CareFusion employs more than 15,000 in 20 countries.
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