Acquisitions often lead to divestitures, and that’s just what happened when CryoLife Inc. (NYSE: CRY) paid $130 million for privately held On-X Life Technologies Holdings, Inc. in December 2015. The medical device maker also processes and distributes implantable human tissues for use in cardiac and vascular surgeries, while On-X Life specializes in mechanical heart valve replacements.
That deal strengthened CryoLife’s focus on aortic and mitral valve surgery, as it more than doubled the size of its U.S. cardiac sales force. That made its Hemodialysis Reliable Outflow Graft (HeRO) product line less vital to its core business, and so the HeRO product line was sold to Merit Medical Systems, Inc. (NASDAQ: MMSI) early in February for $18.5 million in cash. CryoLife will continue to manufacture the HeRO Graft for up to six months under a transition supply agreement, after which Merit will be responsible for manufacturing.