St. Jude Medical has completed its acquisition of Radi Medical Systems for $250 million in cash.
With the transaction, Radi will become part of the St. Jude cardiovascular division. The transaction is expected to be neutral to St. Jude’s consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010. St. Jude said it funded the acquisition with cash on hand outside the United States, as well as with the proceeds from a new three-year term loan established recently with a syndicate of banks.
The “acquisition will accelerate the expansion of St. Jude Medical's cardiovascular growth platform and benefit the customers, employees and shareholders of both companies,” said Daniel J. Starks, chairman, president and CEO of St. Jude. “We look forward to capturing strategic synergies through this acquisition and further expanding our investment in our cardiovascular division technology, products and programs.”
Radi currently develops interventional cardiovascular medical devices in which St. Jude does not. For 2008, Radi is expected to generate approximately $80 million in sales, a 19 percent increase over 2007, according to the St. Paul, Minn.-based St. Jude.
In connection with the transaction, Banc of America Securities acted as financial adviser to St. Jude. Sidley Austin and Mannheimer Swartling Advokatbyra are serving as legal counsel to St. Jude, while Katsky Korins and Advokatfirmen Lindahl are serving as legal counsel to Radi.