AngioDynamics sells PICC, MPP to Spectrum Vascular

AngioDynamics, Inc. announced that it has completed the sale of its PICC and Midline product portfolios to Spectrum Vascular, an innovative medical device company focused on vascular access and medication management, for up to $45 million in cash.

The transaction consists of AngioDynamics’ PICC, Midline and tip location products. This combined portfolio of products contributed approximately $43.5 million in annual sales during AngioDynamics’ fiscal year 2023.

The Company also announced that it has discontinued the sale of its Uniblate and Starburst Radio Frequency products, as well as its Syntrax support catheter products to further streamline its product portfolio. These products contributed approximately $5.5 million in annual sales during AngioDynamics’ fiscal year 2023.

“Today’s divestiture is another significant milestone in our transformation and supports our focus on driving increased penetration of our Med Tech platforms in high-growth markets. It builds upon the divestiture of our Dialysis and Biosentry businesses that we announced in June as well as the plan we announced in January to streamline our manufacturing operations,” said Jim Clemmer, President and Chief Executive Officer of AngioDynamics. “This transaction, combined with the discontinuation of our radiofrequency ablation and Syntrax products, further strengthens our balance sheet, optimizes our product portfolio and deepens our strategic focus on driving growth and profitability within our NanoKnife, Mechanical Thrombectomy and Auryon businesses.”

Mr. Clemmer added, “The acquisition of our PICC and Midline portfolios provides Spectrum Vascular with strong, well-recognized product lines and a skilled commercial team. We are pleased that Spectrum Vascular, a growing provider of vascular access products, is acquiring our PICC and Midline portfolios and will continue to expand patient access to these industry-leading, high-quality medical devices.”

The transaction consideration consists of $34.5 million paid at closing, an earnout related to sales of the divested products over the next two years equal to $5.5 million, and a milestone payment of $5 million paid upon final transfer of the manufacturing of the divested products to a third-party manufacturer.

The assets divested and discontinued today, along with the assets divested in June, will be accounted for as discontinued operations, removing their impact from the Company’s fiscal 2024 results. The divestiture of the PICC and Midline businesses, together with the discontinuance of the radiofrequency ablation and Syntrax businesses, will reduce full-year fiscal 2024 revenue by approximately $50 million. The Company expects that the divestiture of the PICC and Midline businesses, together with the discontinued businesses, will be accretive to full-year fiscal 2024 gross margin.

In connection with the transactions announced today, the Company will eliminate certain sales, marketing and operational expenses. Today’s transaction, inclusive of the restructuring, is expected to be slightly dilutive to fiscal 2024 adjusted earnings per share.

The Company will provide updated fiscal 2024 financial guidance on its fiscal third quarter earnings call in early April.

UBS Investment Bank is serving as financial advisor, and Cadwalader, Wickersham & Taft is serving as legal advisor to AngioDynamics. Fried Frank is serving as legal advisor to Specturm Vascular.
MB Bureau