The market is still busy for healthcare technology sectors, including medical device companies. So far, 29 deals have been announced in 2020 in the Medical Device sector, compared with 32 a year ago, according to our Deal Search Online database. Yes, that’s a slight drop, year over year, but nothing compared with some of the services sectors.
Through mid-May, five deals targeting medical device companies are on the books. The latest announcement was from Smiths Medical, the U.S. subsidiary of Smiths Group plc (OTC: SMGKF). The parent company is a British diversified engineering business with operation in more than 50 countries.
Smiths Medical, based in Plymouth, Minnesota, is a leading supplier of specialized medical devices and equipment for global markets, focusing on the medication delivery, vital care, and safety devices market segments.
It acquired San Diego-based Access Scientific, LLC, a privately-held medical device maker specializing in broad-spectrum vascular access and infection prevention products. Its primary product line is the Powerwand, including midline and extended dwell catheters. The range of Powerwand products extends Smiths Medical’s vascular access product portfolio and enables greater clinician choice to treat patients. Smiths’ makes and markets the Jelco IV catheter and Port-A-Cath products. Financial terms were not disclosed.
In other deals, Boston Scientific Corporation (NYSE: BSX) divested its intrauterine health business, comprised of the Symphion system for myomectomy; the Resectr system for polypectomy; and the Genesys HTA system for endometrial ablation. The buyer was Minerva Surgical, a privately held medical technology company focused on women’s health care, specifically the treatment of abnormal uterine bleeding. Minerva now offers a complete product portfolio for treating the condition. The deal closed on May 12, but no financial terms were disclosed.
The one coronavirus-related deal in the sector came from Aspen Surgical Products, Inc., based in Caledonia, Michigan. A RoundTable Healthcare Partners portfolio company, Aspen manufactures and markets disposable medical products for surgical and health care applications.
Its target was Precept Medical Products, a leader in the U.S. surgical face mask market with its high-quality Fogshield brand. It also offers a full line of procedure face masks, non-surgical isolation gowns, lab jackets, scrubs, coveralls, patient gowns, lab coats, and cold therapy packs.
The acquisition strengthens Aspen’s broad portfolio of medical disposables and patient and staff safety products sold into the acute care market. With Precept’s manufacturing facility in Agua Prieta, Mexico, and distribution warehouses in Douglas, Arizona, and Richmond, Virginia, Aspen gains approximately 200,000 square feet of manufacturing and distribution capacity, too.
