Spectranetics Purchases Endovascular Business from Kensey Nash
Kensey Nash Corporation announced that they will be selling their endovascular business to the Spectranetics Corporation. The deal is worth about $24 million with an initial cash payment of $10 million and additional payments amounting up to $14 million. It is anticipated that the deal will be finalized by the end of June.
In addition to the sale, the two companies have formed an agreement whereby they plan to partner together to continue product manufacturing. Spectranectics will take over responsibility for marketing and sales of all the endovascular products available from Kensey.
Devices included in the sale are the QuickCat, SafeCross, and the ThromCat. Kensey Nash will receive future royalties based on the sales of the latter two devices. Kensey Nash will continue to manufacture these two products for the first three years after the deal is finalized. Kensey Nash will only continue manufacturing of the QuickCat, alternatively, for a six month period.
Kensey Nash acknowledged the excellent opportunity to partner with Spectranectics. Kensey cites that Spectranectics is well positioned to leverage the product line being sold, which will broaden the array of tools available to treat patients with thrombus and chronic total occlusions.
May 14, 2008 Related topics: Mergers & Acquisitions, Surgery, Hematology & Oncology, Cardiology