C. R. Bard, Inc. (NYSE:BCR) today announced that it has entered into a definitive agreement to acquire Rochester Medical, Inc. (NASDAQ:ROCM), a leading developer and supplier of silicone urinary incontinence and urine drainage products, for a purchase price of $20 per share, or approximately $262 million in the aggregate to be paid at closing, expected to occur later this year. This transaction is structured as a merger, has been approved by each company’s board of directors, and is subject to customary closing conditions, including approval of the shareholders of Rochester Medical and regulatory approvals. This acquisition represents a compelling strategic fit for Bard and greatly enhances its position in a $930 million global urology homecare market. Rochester Medical’s products and technology, along with their distribution assets and customer access programs, provide a strong platform for a combined portfolio to compete in the global homecare market. By 2018, an estimated 1.1 billion individuals worldwide will be affected by some form of lower urinary tract or bladder outlet obstruction 1. Urinary retention and incontinence are common chronic conditions with these patients that require product solutions outside the hospital. In the case of urinary retention, a patient may need to self-catheterize up to 2,000 times per year. Rochester Medical manufactures the differentiated Magic 3 ® intermittent self catheters (ISC), which are steadily gaining share in the $800 million global ISC market. This product line incorporates an innovative multi-layer construction specifically designed with a soft outer layer and hydrophilic coating to reduce irritation of the urethral tissue, while having a firm inner layer for ease of insertion. Male urinary incontinence, which can result from radical prostatectomy, benign prostatic hyperplasia (BPH), or aging, is also a chronic condition typically managed with incontinence pads or male external catheters (MECs). Rochester Medical markets an extensive line of innovative products for these patients and currently has a product leadership position in the $130 million global MEC market segment.
Timothy M. Ring, Bard’s chairman and CEO, commented, “Rochester’s double-digit growth product portfolio, including their customer access programs, is a key building block in our strategy to access faster growing markets over the long-term. We believe that strengthening our position in the home care market, and specifically the large and fast-growing intermittent self-catheter segment, is strategically important at this time.”Bard will hold a conference call for investors today, September 4, 2013, beginning at 8:30 a.m. EDT to further discuss this acquisition and other recent business development activity. A live audio webcast of Bard's investor conference call will be accessible to all investors through Bard’s website at http://investorrelations.crbard.com. The recommended browser is Internet Explorer 7+. Users also should have the most recent version of Windows Media Player™, which can be downloaded at: http://microsoft.com/windows/windowsmedia/en/download/. Users may experience varying levels of performance based on their connection speed, system capabilities and the presence of a system firewall. 1 BJU International 2011 Oct;108(7):1132-8. doi: 10.1111/j.1464-410X.2010.09993.x. Epub 2011 Jan 13 C. R. Bard, Inc. ( www.crbard.com ), headquartered in Murray Hill, NJ, is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products. This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, the accuracy of which is necessarily subject to risks and uncertainties. These statements are not historical in nature and use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “forecast”, “plan”, “believe”, and other words of similar meaning in connection with any discussion of future operating or financial performance. Many factors may cause actual results to differ materially from anticipated results including product developments, sales efforts, income tax matters, the outcomes of contingencies such as legal proceedings, and other economic, business, competitive and regulatory factors. Those factors also include the occurrence of any event, change or circumstance that could give rise to a termination of the definitive agreement to acquire Rochester Medical, Inc. or the failure to satisfy the conditions to completion of the merger. The company undertakes no obligation to update its forward-looking statements. Please refer to the Cautionary Statement Regarding Forward-Looking Information in our June 30, 2013 Form 10-Q for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.