LeMaitre Vascular Acquires Lifespan Vascular Graft
BURLINGTON, Mass., Nov. 17, 2010 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of disposable and implantable peripheral vascular devices, announced today that it has acquired the Lifespan Vascular Graft manufacturing business from Angiotech Pharmaceuticals, Inc. Lifespan is a vascular prosthesis used in the repair or replacement of diseased arteries and in the creation of vascular access sites for dialysis. The Company paid Angiotech a net purchase price of $2.8 million in exchange for the business, which includes a factory located in Laguna Hills, California.
Lifespan was introduced in the mid-1990s and is currently sold in the United States, the European Union, Japan, Canada, and several other markets through third-party distributors, primarily Edwards Lifesciences. The net purchase price is 1.8 times Angiotech's sales to distributors during its four most recently completed fiscal quarters.
In a related transaction, LeMaitre Vascular and Edwards have agreed to a wind-down of Edwards' distribution of Lifespan, which is scheduled to conclude on November 30, 2010. The Company will pay Edwards $0.75 million in exchange for orderly market transitions in Europe (where Lifespan sales are strongest) and Japan, and will pay approximately $0.5 million for the majority of Edwards' inventory. The Company is also receiving the Lifespan trademark from Edwards. The Company intends to begin selling Lifespan through its own worldwide sales force on December 1, 2010."ePTFE vascular grafts are an essential vascular surgery implant and are complementary to our growing portfolio of vascular devices and implants," said David B. Roberts, President of LeMaitre Vascular. The Company does not expect to record material Lifespan revenues in Q4 2010 and expects the transaction will reduce Q4 operating income by approximately $0.3 million. The Company expects Lifespan revenues of approximately $1.7 million in 2011. The transaction is expected to reduce operating income by approximately $0.7 million in 2011 and be accretive thereafter. These amounts exclude the impact of any future restructuring activities.
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