ICU Medical to acquire Pfizer’s global infusion therapy business in $1 billion deal
pharmafile | October 6, 2016 | News story | Medical Communications | Hospira, ICU medical, Pfizer, acquisition, infusion
The $1 billion deal that will take place as ICU Medical Inc. take over Pfizer’s Hospira Infusion Systems will be completed in cash and stock. The deal is broken down to Pfizer acquiring $400 million in newly issued shares and $600 million in cash from ICU Medical. It will see Pfizer take an approximate 16.6% stake in ICU Medical. If Pfizer retains a stake of 10% and above in ICU Medical then it will allow them to nominate one director to ICU Medical’s board of directors.
Infusion systems are a form of medical device that deliver fluids, medication or nutrients into a patients circulatory system. The Hospira Infusions Systems include IV pumps, solutions and devices, which will be transferred to ICU Medical on completion of the acquisition.
John Young, Group President of Pfizer Essential Health commenting upon the takeover, said: “We are pleased that Hospira Infusion Systems is combining with ICU Medical, and we believe the combined company will be well positioned in the marketplace to deliver value to customers through its strong product portfolio and the expertise of colleagues from both companies. I’m proud of the Hospira Infusion Systems team and their positive impact on patients around the world.”
The deal is attractive to ICU medical as it allows them to take a leading position in the infusion industry. Vivek Jain, ICU Medical’s Chief Executive Officer, explained in a statement the thinking behind the takeover: “The combination of these two businesses is the natural evolution of a productive relationship that began more than 20 years ago when Hospira began integrating ICU Medical’s needlefree technology into their infusion offering globally”.
For the third quarter of 2016, ICU Medical is expected to report revenue of approximately $96 million. ICU Medical’s shares rose 7.71 percent at the announcement of the news.
Ben Hargreaves
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