Vascular Solutions Acquires Zerusa Limited And The Guardian® Hemostasis Valves
Vascular Solutions, Inc. (Nasdaq: VASC) today announced that it has acquired the assets of Zerusa Limited, a Galway, Ireland based medical device company engaged in the manufacture and distribution of the Guardian® hemostasis valves. The Guardian hemostasis valves are designed to maintain hemostasis during interventional catheterization procedures through a novel sealing system which allows simple introduction and removal of interventional devices while providing the option to lock guidewires in place.
Vascular Solutions has been selling the Guardian hemostasis valves in the U.S. under an exclusive distribution relationship with Zerusa since 2007. In international markets, Zerusa has been selling the Guardian hemostasis valves through a network of independent distributors. Worldwide sales of the Guardian hemostasis valves were $1.7 million in 2010, consisting of $1.3 million in sales by Vascular Solutions in the U.S. and $0.4 million in sales by Zerusa to distributors for sale in international markets. Effective immediately, international sales of the Guardian products will transition to Vascular Solutions’ existing international distribution network, while U.S. sales will continue to be made through Vascular Solutions’ direct sales force.
To effectuate the acquisition, Vascular Solutions has organized a wholly-owned subsidiary located in Galway, Ireland. The Irish subsidiary employs the three previous employees of Zerusa and will continue to manage the manufacture and development of the Guardian hemostasis valves in Ireland. The acquisition price of €3.15 million ($4.3 million) consists of €2.85 million ($3.9 million) paid at closing and €0.3 million ($0.4 million) payable six months following closing.
“We are excited about acquiring the Guardian hemostasis valves and being able to expand their market exposure while capturing the entire margin on the sale of the products in the U.S. and adding international sales to our results,” commented Howard Root, Chief Executive Officer of Vascular Solutions. “Since we have been selling these products for over three years, we know their position and their potential very well. We also look forward to finalizing device improvements to the Guardian valves and developing additional products with our new Irish employees,” Mr. Root added.
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