Medical technologies provider Teleflex has signed a definitive agreement to acquire Standard Bariatrics, a surgical stapler manufacturer, in a deal valued at $300m.
Under the deal terms, Teleflex will pay $170m in an upfront cash payment to Standard Bariatrics at closing, along with an additional consideration of up to $130m payable upon the achievement of certain commercial milestones.
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US-based Standard Bariatrics developed the Titan SGS stapler, which is designed to assist in achieving more consistent and symmetrical sleeve pouch anatomy.
It offers the longest continuous 23cm staple cutline and was developed to address unmet needs in sleeve gastrectomy.
The staple allows surgeons to plan and place it in one firing, minimising variations related to the use of multiple overlapping short-cartridge staple firings.
The device’s design can result in a more secure staple line with fewer chances of leaks.
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By GlobalDataTeleflex chairman, president and CEO Liam Kelly said: “Teleflex’s strategy is to invest in innovative products and technologies that can meaningfully enhance clinical efficacy, patient safety and comfort, reduce complications, and lower the overall cost of care.
“The acquisition of Standard Bariatrics adds an exciting and differentiated product serving the large and growing sleeve gastrectomy market, which we estimate to be approximately 120,000 procedures annually in the US.
“In addition, the deal enables Teleflex to leverage our strength in our existing bariatric surgeon call point, with a differentiated product that complements many of our key surgical products, including our ligation portfolio, MiniLap Percutaneous Surgical System and Weck EFx Fascial Closure Portfolio.”
Subject to customary closing conditions, including securing certain regulatory approvals, the transaction is anticipated to be concluded early in the fourth quarter of the year.
The company plans to fund the deal using borrowings obtained under its revolving credit facility.
In June, Teleflex commenced subject enrolment in a clinical study for its MANTA Vascular Closure Device.
