US-based medical device and tissue processing firm CryoLife has agreed to acquire a mechanical heart valve company On-X Life Technologies Holdings (On-X), for approximately $130m.

The agreement is comprised of 70% in cash and 30% in CryoLife common stock.

The cash portion of the transaction is expected to be financed by the company with proceeds from the issuance of a new credit facility and available cash.

The company secured a commitment from Capital One, Fifth Third Bank and Citizens Bank for a five-year, $95m senior secured facility, which includes a $75m term loan and a $20m revolving credit facility.

"This transaction will provide CryoLife access to the $220m mechanical valve market with a highly advanced portfolio of products."

CryoLife president and CEO Patrick Mackin said: "We believe this will be a transformative acquisition for CryoLife that will significantly enhance the size of our addressable market and growth potential.

"This transaction will provide CryoLife access to the $220m mechanical valve market with a highly advanced portfolio of products.

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"On-X valves have been implanted in more than 200,000 patients, and On-X has achieved a 13% revenue CAGR over the past four years with modest sales and marketing support."

On-X Life produces artifical heart valve replacement and repair products and its FDA approved aortic and mitral prosthetic valves were implanted in around 200,000 patients across the globe.

The On-X aortic heart valve is claimed to be the only FDA approved mechanical valve, which was clinically proven to be safer with less anticoagulation.

Subject to the satisfaction of customary closing conditions, the transaction is expected to be completed in January next year.