LeMaitre Vascular (NASDAQ: LMAT), a Massachusetts-based medical device manufacturer, announced a new addition to its portfolio. The company has purchased Artegraft, Inc., which processes and sells biologic vascular grafts that are derived from bovine carotid arteries and are implanted primarily in hemodialysis access patients.
Its products are marketed under the brand Artegraft and are sold only in the U.S. Artegraft generated trade sales of $15.6 million and estimated hospital-level sales of $18.6 million during the twelve-month period ended May 31, 2020. Artegraft’s unit sales grew by 10% in 2019.
LeMaitre purchased Artegraft for a total of $72.5 million in cash, with $65 million upfront and $7.5 million in escrow to be released on December 31, 2021. The deal also includes potential earnout payments of $17.5 million payable based upon future sales of the acquired business.
Under the terms of the deal, LeMaitre will continue to operate Artegraft’s manufacturing facility in North Brunswick, New Jersey for at least three and a half years and will retain most of Artegraft’s employees, including seven sales and marketing personnel.
LeMaitre financed the acquisition and related expenses with available cash on hand and a $65 million senior secured credit facility provided by KeyBank National Association and Truist Bank.
The last acquisition reported by LeMaitre was in October 2019 according to our Deal Search Online database, when it bought Admedus Ltd.‘s biological patch business, which includes patches marketed under the brand names CardioCel and VascuCel. Both are designed to reduce the risk of calcification. Annualized 2019 sales of these product lines were $7.1 million, mostly in Europe and the United States. The parties also signed a license agreement for the tissue processing technology limited to the CardioCel and VascuCel product lines. Admedus will continue to manufacture the products for up to three years while LeMaitre transitions manufacturing to its U.S. headquarters. LeMaitre spent $15.5 million to acquire the business.