Medtronic Purchases Restore Medical
Restore Medical will be purchased by Medtronic in a deal for approximately $29 million. The acquisition will essentially save Restore, who was on the brink of insolvency. A news release was issued by Medtronic describing completion of the agreement, which is expected to close within 90 days.
Restore Medical manufactures tools and devices to treat patients with a variety of different sleep disorders including sleep apnea and snoring. Restore has faced financial difficulties secondary to problems obtaining reimbursement from Medicare for their Pillar Palatal Implant System, which helps to stiffen the soft palate.
The company’s financial instability was initially made public in February. The company then announced concerns about availability of cash as early as May. The sale to Medtronic has been under discussion for some time.
Medtronic executives noted the benefits of the acquisition. In particular, products available from Restore Medical will fill existing gaps in the ear, nose, and throat business of Medtronic. These products will add offerings that are less invasive and less traumatic especially to treat patients with obstructive sleep apnea.
April 25, 2008 Related topics: Pulmonary, Mergers & Acquisitions