C R Bard has agreed to acquire Medafor, a developer and supplier of plant-based hemostatic agents, for a purchase price of $200m.
The deal, which is expected to close later in 2013, includes contingent payments of up to an additional $80m, based on achieving specific revenue-based milestones through to 30 June, 2015.
The transaction which has been approved by both companies' boards of directors is subject to an approval by Medafor's shareholders and customary regulatory review.
C R Bard chairman and CEO Timothy M Ring noted with this acquisition, the company will continue to shift the mix of the portfolio to improve the organic growth profile of the business for the longer term.
"This technology platform represents an important building block for our surgical specialty product offering and provides a global footprint for continued expansion," Ring said.
Medafor's Arista MPH Hemostat, a plant-based microporous polysaccharide hemosphere is used to control bleeding when conventional means are ineffective or impractical.
It is also regarded as safe, effective and easy to use in a variety of surgical procedures.
C R Bard believes Arista platform can be further expanded in future since Medafor has a robust pipeline of potential future products, especially the surgical hemostats. C R Bard also expects it to help expand its opportunities in the global surgical hemostats market, worth more than $1.4bn.
Medafor's acquisition is expected to enhance business opportunities for Bard's surgical specialties in its Davol subsidiary.
The acquisition, which will provide C R Bard with a new technology platform, is expected to contribute approximately 1% to its revenue growth in 2014.
Surgical hemostats are used in a wide variety of procedures to control bleeding intraoperatively, in order to reduce hemorrhage.
In addition, these products help provide greater visibility of the surgical site and help reduce postoperative complications and the potential for costly transfusions.