Merit Medical to acquire assets of Alveolus

The purchase price of the Alveolus assets is approximately $19 million, subject to post-closing adjustments. The Alveolus assets consist primarily of an intellectual property portfolio, inventory, receivables and manufacturing equipment. Merit intends to fund the purchase price from its existing cash reserves.

Merit intends to hire essentially all of Alveolus’s existing US sales force of approximately 10 individuals and several R&D and manufacturing personnel.

Merit has also entered into an agreement with Biosearch Medical Products, a wholly-owned subsidiary of Hydromer, to acquire two additional products that are being sold on an original equipment manufacturer basis to major medical device companies. These products go hand-in-hand with the strategy of building a strong product offering in the gastroenterology market.

The Biosearch transaction involves the transfer of production to a Merit facility. The purchase price is approximately $1.6 million, which Merit also intends to fund from its existing cash reserves.

Fred Lampropoulos, chairman and CEO of Merit, said: We believe this acquisition will enhance our future corporate growth with products that are well accepted in the US. The acquired products are also CE marked, and we believe our infrastructure and long-standing reputation for service and quality products in the European market will provide opportunities for substantial growth of the Alveolus products.