Merit dives back into M&A with buy of catheter maker
|Merit Medical Systems has acquired Medigroup, maker of abdominally inserted dialysis catheters--courtesy of Medigroup|
Merit isn't disclosing the price tag this time, but the Illinois-based Medigroup pulls in about $2 million in sales a year, mostly consolidated in the U.S., Merit said. However, Merit's infrastructure will give the catheters worldwide distribution, giving Medigroup's products a substantial boost, Merit CEO Fred Lampropoulos said.
"Medigroup offers a broad product line of catheters and implantation devices, and we believe this opportunity will enhance our overall dialysis business," Lampropoulos said in a statement. "While growing in the United States, peritoneal dialysis is the procedure of choice over chronic catheters in many international markets."
The peritoneal method involves treating kidney disease by surgically inserting a catheter into the abdomen, and Medigroup has established itself as a profitable player in the space, with 75% gross margins, Merit said.
Merit specializes in disposable devices, and this move into renal catheters follows Merit's expansion into interventional cardiology with last week's acquisition of Thomas Medical. The Utah devicemaker has made quite a bit of M&A noise in a short time, and, once the Thomas deal closes, Merit will have significantly expanded its presence in the catheter world.
- read the announcement
Special Report: Top M&A targets in devices and diagnostics
Merit buys GE unit for $167M
Merit, PhotoMedex recipients of FDA warning letters
Merit Medical creates 100 jobs in plant expansion