SurModics Acquires Balloon Catheter Maker Creagh Medical

(RTTNews) - SurModics, Inc. (SRDX), a provider of medical device and in vitro diagnostic technologies, said it has acquired Creagh Medical Ltd., an innovative developer and manufacturer of percutaneous transluminal angioplasty or PTA balloon catheters, for 30 million euros or about $32 million.

The Creagh Medical business is expected to generate $3.5 million to $4 million of revenue for SurModics in fiscal year 2016. The acquisition will be dilutive on a GAAP and adjusted earnings per share basis in SurModics' fiscal year 2016 and accretive on an adjusted earnings per share basis in fiscal year 2017.

According to SurModics, the acquisition is a major step forward in its strategy to transform its Medical Device business from being a provider of coating technologies, to offering whole-product solutions to medical device customers in the large and growing global interventional vascular market.

Creagh Medical is in Ballinasloe, Ireland. The company was established in 2006 with significant investment by USCI Japan to establish a state-of-the-art facility equipped for medical device research, development and manufacturing from resin to finished catheters.

The payment for the acquisition includes an upfront payment of 18 million euros, and up to 12 million euros, based on achievement of revenue and value-creating operational milestones. Other terms of the agreement were not disclosed.