Merit Medical is Purchasing Cook Medical’s "Lead Management Portfolio" for ~$210 Million in Cash

South Jordan, Utah-based Merit Medical Systems (NASDAQ:MMSI) has entered into a definitive Asset Purchase Agreement with Cook Medical to purchase its "Lead Management Portfolio" for ~$210 million in an all cash transaction.

According to the acquisition news release, Fred Lampropoulos, Merit’s Chairman and Chief Executive Officer, says the APA will "... strengthen our fast-growing, high-margin electrophysiology and CRM business with the addition of differentiated products and an established commercial infrastructure."

The release further explains that Cook's "Lead Management Portfolio" is comprised of

"... a comprehensive end-to-end product portfolio of medical devices and accessories used in lead management procedures for patients who need a pacemaker or an implantable cardioverter-defibrillator (ICD) lead removed or replaced."

With closure of the APA transaction (anticipated before 01 January 2025), Merit expects to

• Add ~$40 million to Merit's "... combined annualized electrophysiology and cardiac rhythm management revenue serving the global cardiac intervention market;" with
• 42% of said revenue coming in Europe, the Middle East, and Africa (EMEA), and
• An additional 41% of said revenue coming in the United States, and with
• The addition of the Cook Medical APA revenue expected to be accretive starting in fiscal 2026 (ended December 31).

According to its 2023 Annual Report, Merit had revenue of ~$1.26 billion (for the year ended ended December 31), with net profit of ~$94.4 million.

As of market close yesterday, Merit had a valuation of $5.57 billion, up from ~$3.98 billion roughly one year ago (as of 30 September 2023).

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