MRI components provider Intermagnetics General has agreed to purchase MR radiofrequency coil manufacturer MRI Devices (MRIDC) for $100 million in cash and stock.
If the deal is completed, Intermagnetics will combine Waukesha, WI-based MRIDC with its Medical Advances (MAI) subsidiary. Intermagnetics chairman and CEO Glenn Epstein said that the two businesses have similar product offerings: MAI's RF coils are designed primarily for imaging extremities, while MRIDC focuses on coils for cardiovascular and neurovascular applications. The company also has a portfolio of additional products for the MRI market.
The agreement, subject to regulatory approval, is expected to be immediately accretive to operating earnings and cash flow, the company said. With the addition of MRI Devices, Intermagnetics' annual revenue is expected to climb to almost $300 million, and the purchase will add an estimated 20¢ to the company's operating earnings per share in fiscal 2005.
By AuntMinnie.com staff writersMay 27, 2004
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