St Jude Medical acquires Radi Medical Systems for $250 million

US-based St Jude Medical has completed the acquisition of Sweden-based Radi Medical Systems for $250 million in cash.
With this transaction, Radi Medical Systems will become part of the St Jude Medical cardiovascular division. The transaction is expected to be neutral to St Jude Medical's consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010.
St Jude Medical funded the acquisition with cash on hand outside the US as well as with the proceeds from a new three-year term loan established recently with a syndicate of banks.
In connection with the transaction, Banc of America Securities acted as financial advisor to St Jude Medical, and Sidley Austin and Mannheimer Swartling Advokatbyra are serving as legal counsel to St Jude Medical and Katsky Korins and Advokatfirmen Lindahl are serving as legal counsel to Radi Medical.
Daniel Starks, chairman, president and CEO of St Jude Medical, said: "This acquisition will accelerate the expansion of St Jude Medical's cardiovascular growth platform and benefit the customers, employees and shareholders of both companies. We look forward to capturing strategic synergies through this acquisition and further expanding our investment in our cardiovascular division technology, products and programs."
Thomas Engstrom, CEO of Radi Medical Systems, said: "We are pleased to join with the industry leader in active vascular closure and a partner who shares our vision of developing innovative cardiovascular technologies that improve patient care. This transaction brings together complementary product lines and, through St Jude Medical's sales and distribution infrastructure, extends our reach to even more physician customers for the benefit of the patients they help everyday."