Endo Pharmaceuticals has acquired 100 percent outstanding shares of HealthTronics, Inc, a leading US provider of urological products and services, for approximately US$ 223 million plus approximately US$ 35 million in net debt, as part of its effort to leverage the potential of urology market.
The strategy is to continuing diversifying and to move into new growth areas beyond pharmaceuticals, and strengthen its commitment to improved patient outcomes in urology, announced the company in a press release.
The acquisition expands Endo's product offerings to urologists with the addition of lithotripsy, benign prostate hyperplasia (BPH) and prostate cancer therapies, as well as anatomical pathology services for the detection and diagnosis of cancer and other conditions.
"Beyond diversifying our revenue base, the acquisition of HealthTronics further positions Endo as a preferred healthcare provider of multiple medical solutions and delivery mechanisms that help improve patient outcomes in the field of Urology," said Dave Holveck, president and CEO of Endo Pharma.
"This strategic acquisition immediately elevates Endo from a pharmaceutical company to a diversified partner to physicians and payers in the treatment and diagnosis of urological and pain-related conditions. This deal will also enhance our ability to deliver long-term, sustainable growth for our shareholders in an evolving healthcare environment," he added
Under the terms of the merger agreement, Endo will commence an all cash tender offer to acquire 100 percent of the outstanding shares of HealthTronics for approximately US$ 223 million or US$ 4.85 cash per HealthTronics share plus the assumption of approximately US$ 35 million in net debt. HealthTronics shares that are not acquired in the tender offer will be purchased at the same price in a second-step merger. HealthTronics will operate as a wholly-owned subsidiary of Endo. The transaction has been approved by the boards of directors of both companies.
HealthTronics president and CEO James SB Whittenburg stated, "This transaction achieves significant value for our shareholders and going forward, enables us to expand our offerings as a leading provider of urological products and services. Together with Endo, we are better positioned to fulfil our mission of bringing services and technology that both improve patient care and enhance physician practice economics thus enhancing the value of the channel HealthTronics has established with leading urologists."
In addition, Whittenburg and other key HealthTronics executives have entered into employment agreements, to be effective upon closing of the offer, providing for their continued employment with the combined company following the transaction. Whittenburg has been named company group president and will continue to lead HealthTronics.
HealthTronics is a premier urology company providing an exclusive suite of healthcare services and technology, including urologist partnership opportunities, surgical and capital equipment, maintenance services and anatomical pathology services.
Endo Pharmaceuticals is a specialty pharmaceutical company engaged in the research, development, sale and marketing of branded and generic prescription pharmaceuticals used to treat and manage pain, bladder cancer, prostate cancer and the early onset of puberty in children, or central precocious puberty (CPP).