Interventional-device firm Guidant has signed an agreement to purchase fellow interventional supplier Cook Group in a stock deal valued at up to $3 billion.
In announcing the deal, Guidant said it believes the deal positions the firm for long-term leadership in the drug-eluting stent market. Guidant also cited the strong financial performance of privately held Cook, as well as products such as its work-in-progress Zenith abdominal aortic aneurysm (AAA) graft and interventional radiology technology. Cook had more than $500 million in revenues in 2001, Guidant said.
Indianapolis-based Guidant would acquire the Bloomington, IN-based Cook for up to $3 billion in Guidant stock, subject to a maximum issuance of 65.79 million Guidant shares, priced in two phases. The first phase will be priced at a minimum of $40 per Guidant share, with the maximum number of shares issued at 41.25 million. The second phase will be priced at a minimum of $55 per Guidant share, with a maximum number of shares issued at 24.54 million, according to the companies.
Guidant said that its obligation to complete the acquisition is subject to certain clinical and legal conditions relating to Cook's Achieve drug-eluting coronary stent system. The conditions include positive clinical results and Guidant's rights to use certain clinical data and to sell Achieve, according to Guidant.
The deal is also subject to shareholder approval, government clearances, and other conditions. The firms anticipate closure of the deal in early 2003.
By AuntMinnie.com staff writers
July 30, 2002
Related Reading
Cook wins German patent fight vs. Boston Scientific, June 6, 2002
Guidant, Cook file to initiate stent trial, October 9, 2001
Copyright © 2002 AuntMinnie.com
