AngioDynamics has divested its peripherally inserted central catheter (PICC) and Midline vascular access product portfolios to Spectrum Vascular for up to $45m in cash.
Spectrum Vascular is a medical device firm focused on vascular access and medication management.
The transaction includes AngioDynamics’ PICC, Midline, and tip location products.
During the company’s fiscal year 2023, the combined portfolio of products contributed over $43.5m in revenue annually.
AngioDynamics, a medical technology company focused on restoring healthy blood flow, also stopped selling its Uniblate and Starburst Radio Frequency devices and its Syntrax support catheter goods.
The move was intended to further simplify the company’s product line.
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.”
The transaction consideration includes $34.5m paid at closing and the $5.5m earnout on sales of the divested products over the next two years.
It also includes a $5m milestone payment given upon the final transfer of manufacturing of the divested products to a third-party manufacturer.
The company’s fiscal 2024 results will not be impacted by the assets that were divested and discontinued, nor by the assets that were divested in June since they will be treated as discontinued operations.
The company anticipates that the discontinued operations and the PICC and Midline business divestment will increase the gross margin for the entire fiscal year 2024.
AngioDynamics received legal and financial advice from Cadwalader, Wickersham & Taft, and UBS Investment Bank, respectively. Spectrum Vascular received legal advice from Fried Frank.
