CryoLife acquires German endovascular medical device maker Jotec
CryoLife Inc. (NYSE: CRY) is acquiring Jotec AG, a German medical device manufacturer for aortic repairs. The deal for Jotec is intended to expand the buyer’s product portfolio and drive long-term growth beyond the five year horizon, according to CryoLife CEO Pat Mackin.
Founded in 2000, Jotec manufactures endovascular stent grafts and cardiac along with vascular surgical grafts used in newer forms of aortic surgery. An endovascular stent graft is a fabric tube supported by metal wire scaffolds that reinforces weak spots in the aorta. CryoLife is acquiring the Hechingen, Germany-based target for $225 million.
Atlanta-based CryoLife also distributes a variety of medical devices and implantable living tissues to more than 80 countries worldwide. The buyer’s implants are used in cardiac and vascular surgical procedures. The deal for Jotec gives CryoLife access to the $1.2 billion U.S. stent graft market.
"We believe this acquisition will enable CryoLife to deliver sustained, high single-digit revenue growth, while also diversifying our revenues into a significantly larger addressable market,” states Mackin. “In addition, the acquisition will leverage our global infrastructure and accelerate our ability to go direct in Europe, and will foster considerable cross-selling opportunities between the CryoLife and JOTEC product portfolios.”
Demand for more personalized treatment options, and constant changes in the healthcare sector continue to keep medical device companies busy. Recent deals include: Vance Street capital LLC’s purchase of the cardiovascular manufacturing tools business from W.L. Gore & Associates Inc.; Arlington Capital-backed Avalign Technologies’ acquisition of medical device distributors Thortex and Millennium Surgical.; Boston Scientific’s (NYSE: BSX) deal to buy heart valve replacement maker Symetis; Teleflex Inc.’s purchase of Vascular Solutions Inc. for $1 billion; and Medtronic plc’s (NYSE: MDT) acquiring of HeartWare International Inc.for nearly $1.1 billion. GTCR also launched a platform company to fund medical device deals. Vinson and Elkins is acting as legal counsel to CryoLife, while Walder Wyss Ltd. is serving as legal counsel to Jotec.