ICU Medical, Inc. to Acquire Hospira's Critical Care Product Line
09 Julho 2009 - 10:15AM
PR Newswire (US)
-- ICU Expects Acquisition to be Accretive to 2009 Earnings -- --
Hospira to Focus Future Growth and Innovation in Streamlined
Product Line -- SAN CLEMENTE, Calif., and LAKE FOREST, Ill., July 9
/PRNewswire-FirstCall/ -- ICU Medical, Inc., (NASDAQ:ICUI), a
leading low-cost manufacturer of safe medical connectors, custom
medical products and critical care devices, announced today that it
has entered into a definitive purchase agreement to acquire the
commercial rights and physical assets of Hospira, Inc.'s (NYSE:
HSP) critical care product line for approximately $35 million in
cash. The acquisition is expected to close during the third quarter
of 2009. "This acquisition creates a long-term growth opportunity
for ICU Medical and positions us to improve gross margins and
earnings by controlling all aspects of the critical care product
line," said Dr. George Lopez, chairman and president, ICU Medical.
"We have been manufacturing the majority of Hospira's critical care
offerings for over four years and Hospira continues to be a very
important partner for our company. Hospira's recent internal
initiatives have created a good opportunity for us to acquire this
business. This transaction will enable us to completely control
worldwide commercial responsibility for the critical care products
including sales, marketing, customer contracting and distribution."
"This agreement advances Hospira's Project Fuel optimization
efforts to simplify our product line," said Christopher B. Begley,
chairman and chief executive officer, Hospira. "It will enable an
even greater focus on Hospira's core strategic areas of specialty
injectable pharmaceuticals (SIP) and medication management systems
(MMS), driving innovation and growth in these key businesses. The
strong partnership between Hospira and ICU Medical, combined with
ICU Medical's strength in the critical care market, will also make
this transition a smooth one for customers, and will facilitate
continued availability and future investment in these important
critical care products." In 2005, Hospira and ICU Medical entered
into a strategic manufacturing, commercialization and development
agreement for Hospira's critical care product line. As part of this
previous agreement, ICU Medical also purchased Hospira's Salt Lake
City facility where the majority of Hospira's critical care
products are produced. Upon completion of the acquisition announced
today, ICU Medical will gain complete control of Hospira's critical
care product line and acquire the commercial rights to the
products. To help facilitate the transition process for Hospira's
customers and employees, the two companies are entering into
transitional services agreements for up to 18 months. Dr. Lopez
added, "We will continue to deliver the critical care products to
the existing customer base and we believe we are in a good position
to increase overall market penetration of these products by
leveraging our existing customers as well as strategic
partnerships. We believe our leading low-cost manufacturing
combined with our expanding sales team positions us to profitably
increase our market share in critical care." Scott Lamb, ICU
Medical's Chief Financial Officer, said, "Our strong cash flow and
balance sheet enable us to increase our product offerings and
further expand our geographic footprint both organically and
through strategic acquisitions. This acquisition is a natural
progression for our company in the critical care market and we are
very pleased with the long-term opportunities it provides." ICU
Medical ended the first quarter with a very strong balance sheet.
As of March 31, 2009, cash, cash equivalents and investment
securities totaled $141.9 million, it had no long-term debt, and
working capital was $170.1 million. Additionally, ICU Medical
achieved operating cash flow of $19.8 million for the first quarter
of 2009. ICU Medical Fiscal Year 2009 Guidance ICU Medical expects
this acquisition to be accretive to its earnings in 2009. It will
update full-year 2009 revenue and earnings guidance on its
second-quarter earnings call, currently scheduled for the third
week of July, 2009. About ICU Medical, Inc. ICU Medical, Inc.
(NASDAQ:ICUI) is a leader in the development, manufacture and sale
of proprietary, disposable medical connection systems for use in
vascular therapy applications. ICU Medical's devices are designed
to protect patients from catheter related bloodstream infections
and healthcare workers from exposure to infectious diseases through
accidental needle sticks or hazardous drugs. It is also a leader in
the production of custom I.V. systems and incorporates proprietary
products into many of those custom I.V. systems. For more
information, visit http://www.icumed.com/. About Hospira Hospira,
Inc. is a global specialty pharmaceutical and medication delivery
company dedicated to Advancing Wellness(TM). As the world leader in
specialty generic injectable pharmaceuticals, Hospira offers one of
the broadest portfolios of generic acute-care and oncology
injectables, as well as integrated infusion therapy and medication
management solutions. Through its products, Hospira helps improve
the safety, cost and productivity of patient care. The company is
headquartered in Lake Forest, Ill., and has more than 14,000
employees. Learn more at http://www.hospira.com/. Forward-Looking
Statement This press release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements contain words such as "will," "expect,"
"believe," "could," "would," "estimate," "continue," "build,"
"expand" or the negative thereof or comparable terminology, and may
include (without limitation) information regarding ICU Medical's or
Hospira's expectations, market penetration, goals or intentions
regarding the future, including, but not limited to, ICU Medical's
expectation that the acquisition will be accretive to its earnings
in 2009; the creation of long-term growth opportunities for ICU
Medical and its positioning for improvements to its gross margins
and earnings; ICU Medical's ability to control worldwide commercial
responsibility for its critical care products; the belief that the
strong partnership between ICU Medical and Hospira and ICU
Medical's strength in the critical care market will make the
transition smooth for customers and will facilitate continued
availability and future investment in critical care products; ICU
Medical's continued delivery of critical care products and
positioning to increase its overall market penetration; the
profitable increase of ICU Medical's market share in critical care;
the expectation that the acquisition will close in the third
quarter of 2009. These forward-looking statements are based on
current expectations, estimates, forecasts and projections and
assumptions believed to be reasonable by the management of the
party making such statements, all of which are subject to risks and
uncertainties that could cause actual results and events to differ
materially from those stated in the forward-looking statements.
These risks and uncertainties include, but are not limited to:
growing or declining demand for our products; investments in
strategic growth; continued growth; third-party regulations or
approvals; increased competition; unforeseen litigation or outcomes
of litigation and improving efficiencies. Future results are
subject to risks and uncertainties, including the risk factors, and
other risks and uncertainties described in ICU Medical's and
Hospira's respective filings with the Securities and Exchange
Commission, including the respective Annual Reports on Form 10-K
for the year ended December 31, 2008, Quarterly Reports on Form
10-Q for the quarter ended March 31, 2009 and other current and
periodic reports filed with or furnished to the Securities and
Exchange Commission from time to time. Forward-looking statements
contained in this press release are made only as of the date
hereof, and ICU Medical and Hospira undertake no obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.
http://www.newscom.com/cgi-bin/prnh/20040503/HSPLOGO
http://photoarchive.ap.org/ DATASOURCE: Hospira, Inc.; ICU Medical,
Inc. CONTACT: Media and Financial Community, Scott Lamb, Chief
Financial Officer of ICU Medical, Inc., +1-949-366-2183; or John
Mills, Senior Managing Director of ICR, Inc., +1-310-954-1100, for
ICU Medical, Inc.; or Media, Tareta Adams, +1-224-212-2535, or
Financial Community, Karen King, +1-224-212-2711, both of Hospira,
Inc. Web Site: http://www.hospira.com/ http://www.icumed.com/
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