US-based medical technologies provider CR Bard has entered an agreement to buy Liberator Medical Holdings for $181m.
Under the deal, Bard agreed to pay $3.35 per share to acquire Liberator Medical, a direct-to-consumer distributor of medical products classified as durable medical equipment (DME).
Liberator is involved in delivering general medical supplies, including urological catheters, ostomy supplies, mastectomy fashions and diabetic supplies.
According to the Centers for Medicare and Medicaid Services (CMS), national expenditures within the DME market will increase from $45.8bn this year to $71.3bn in 2023.
The company, which provides customers with products from multiple manufacturers, will strengthen Bard’s presence in the home care market in the US.
CR Bard chairman Timothy Ring said: "This acquisition is a key building block in our strategy to access faster growing markets.
"As the population ages and more healthcare is expected to occur outside of the hospital setting, we believe that having direct access to the patient in the home is strategically important."
"We look forward to adding a strong distribution platform with potential for future growth to our product and technology platforms."
Approved by each company’s board of directors, the transaction is subject to customary closing conditions, including approval from the shareholders of Liberator and regulatory approvals. It is expected to complete in the first quarter of next year.
The combination of marketing, industry expertise and customer service from Liberator offers a simple, reliable way for patients and their physicians regarding prescriptions and supply requirements to purchase needed medical supplies on a recurring basis.
According to Bard, the transaction is expected to add $70m to 2016 net sales and to be slightly accretive to adjusted cash earnings per share in 2016.