Vascular Solutions – VASC – Acquires Accumed Radial Access Wrist Splint Product
Vascular Solutions, Inc. (Nasdaq: VASC) announced that it has acquired the radial artery access wrist positioning splint product assets of privately-held Accumed Systems, Inc., headquartered in Ann Arbor, Michigan. Since 1999, Accumed has sold the wrist positioning splint product exclusively in the United States via a company website, with current annualized sales approaching $500,000.
- $1.5 million purchase price for wrist splint product assets
- Current annualized sales approaching $500,000
- Deal modestly accretive to net income, neutral to EPS in 2012
Radial artery access for coronary angiography and interventional procedures is now undergoing significant expansion in the United States, due mainly to reduced patient recovery times and improved patient comfort. The Accumed device is designed to simplify arterial access during radial procedures, for both the physician and patient, by holding the wrist and forearm in an appropriate and comfortable position and by eliminating unwanted hand and arm movement during and after the procedure.
The purchase price was $1.5 million, which was paid with cash on hand. Vascular Solutions expects the transaction to have an immediate accretive impact on net income, although the addition of the wrist splint business will not have a material impact on 2012 earnings per share. Beginning in 2013, Vascular Solutions expects the product to be modestly accretive on an earnings per share basis. Under the terms of the agreement, Accumed will manufacture the product for sale by Vascular Solutions through the end of 2014, after which time Vascular Solutions will assume responsibility for manufacturing the device.
“We are very pleased to add the Accumed wrist positioning splint to our lineup of products for the cardiac cath lab, and we believe we can significantly expand sales of this product through our 91-person U.S. direct sales force,” said Howard Root, Chief Executive Officer of Vascular Solutions. “This transaction with Accumed fits with our strategy of pursuing tuck-in acquisitions that leverage our sales force and established call points, and it fits very well with our commitment to meeting the needs of the fast-growing radial artery access market.”
About Accumed Systems
Accumed Systems, Inc. is a private company headquartered in Ann Arbor, Michigan. The company was founded in 1999 by the widely-known interventional cardiologist Dr. William W. O’Neill to develop and commercialize trans-radial catheterization accessories.
About Vascular Solutions- VASC
Vascular Solutions, Inc. (VASC) is an innovative medical device company that focuses on developing unique clinical solutions for coronary and peripheral vascular procedures. VASC’s product line consists of over 60 products in three categories: catheter products, hemostat products and vein products.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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