Medical technology company AngioDynamics has completed the sale of its peripherally inserted central catheter (PICC) and Midline product portfolios to Spectrum Vascular for a sum that could reach $45m.
The transaction includes AngioDynamics' PICC, Midline, and tip location products, which collectively generated nearly $43.5m in sales during the fiscal year 2023.
The sale's financial terms involve $34.5m paid at closing, an additional earnout of $5.5m based on sales related to the next two years, and a milestone payment of $5m upon the final transfer of manufacturing to a third party.
This sale is part of AngioDynamics' ongoing efforts to optimise its portfolio and restructure its manufacturing footprint.
To further streamline its product portfolio, the company also ceased sales of its Uniblate and Starburst Radio Frequency products, along with the Syntrax support catheter products.
AngioDynamics also plans to cut certain sales, marketing, and operational expenses in connection with these transactions.
AngioDynamics president and CEO Jim Clemmer said: “Today’s divestiture is another significant milestone in our transformation and supports our focus on driving increased penetration of our Med Tech platforms in high-growth markets.
“It builds upon the divestiture of our Dialysis and Biosentry businesses that we announced in June, as well as the plan we announced in January to streamline our manufacturing operations.
“This transaction, combined with the discontinuation of our radiofrequency ablation and Syntrax products, further strengthens our balance sheet, optimises our product portfolio and deepens our strategic focus on driving growth and profitability within our NanoKnife, Mechanical Thrombectomy and Auryon businesses.”
UBS Investment Bank acted as financial adviser while Cadwalader, Wickersham & Taft provided legal counsel to AngioDynamics. Spectrum Vascular received legal advice from Fried Frank.
Last year, AngioDynamics divested its dialysis catheter product portfolio and the BioSentry Tract Sealant System Biopsy product to Merit Medical Systems for a cash consideration of $100m.
