This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

St. Jude Medical Pays $200M for NeuroTherm

NEW YORK (The Deal) -- St. Jude Medical Inc.  (STJ - Get Report) of St. Paul, Minn., is purchasing NeuroTherm, a manufacturer of radiofrequency ablation systems for interventional pain management, an area of the chronic pain market in which the buyer is weak.

The parties unveiled a definitive agreement Monday in which St. Jude will pay about $200 million in cash for the privately held company. NeuroTherm is based in Wilmington, Mass., and has offices in London, Amsterdam and Germany.

"NeuroTherm's radiofrequency ablation products are an ideal complement to St. Jude Medical's chronic pain portfolio, providing our global sales force with additional interventional pain therapies that offer potential relief to patients earlier in the chronic pain continuum," St. Jude Chief Operating Officer Michael Rousseau said in a statement. The acquisition will make St. Jude "the only medical device manufacturer with both RFA and spinal cord stimulation," he added.

The NeuroTherm acquisition is expected to add about $10 million to $15 million to St. Jude's 2014 sales. It would be neutral to consolidated earnings per share in 2014 and accretive thereafter on a GAAP basis, the company projects.

The deal is expected to close in the third quarter, dependent on customary closing conditions.

NeuroTherm is a portfolio company of Linsalata Capital Partners, a Cleveland-based private equity firm. Linsalata provided a recap for NeuroTherm in February 2011. Also that year, NeuroTherm acquired ArthroCare's interventional spine procedure lines Parallax for verebroplasty and Contour for cavity creation.

Chronic pain affects 1.5 million people worldwide, with 230 million diagnosed in the U.S. in 2013 with acute and chronic pain. About 8% of those individuals received interventional therapy.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
STJ $67.76 -0.76%
AAPL $124.75 -1.13%
FB $80.78 -1.86%
GOOG $524.05 -1.83%
TSLA $206.79 0.04%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs