AngioDynamics Divests Dialysis Portfolio And Biopsy Product Line To Merit Medical Systems For $100M

AngioDynamics, Inc. ANGO divested its Dialysis product portfolio and BioSentry Tract Sealant System Biopsy product to Merit Medical Systems, Inc. MMSI for $100 million in cash.

AngioDynamics intends to use net proceeds to pay debts and support further strategic investments.

The deal includes the sale of AngioDynamics' DuraFlow, DuraMax, Evenmore, Schon XL, Trio-CT and Vaxel Plus Hemodialysis Catheter brands, and BioSentry Tract Sealant System Biopsy brand. 

The divested assets do not have significant direct costs and contributed approximately $32 million in sales in FY23, AngioDynamics said.

ANGO expects the transaction to be dilutive to adjusted EPS and slightly dilutive to corporate gross margins.

"The transaction strengthens our balance sheet and better positions us to focus on driving growth in our NanoKnife, Mechanical Thrombectomy and Auryon businesses," commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics.

AngioDynamics expects net sales for its recently completed fiscal year ending May 31, 2023, including the Dialysis Product Portfolio and BioSentry product, to be in the range of $338 million to $339 million.

In a separate release, Merit Medical said the financial profile of these acquisitions is compelling. 

"We expect these acquisitions to be accretive to our non-GAAP net income and non-GAAP EPS in the first full year post-closing and accretive to our non-GAAP gross and operating margins, non-GAAP net income and non-GAAP EPS in the second full year post-closing," said Fred P. Lampropoulos, Merit Medical's Chairman and Chief Executive Officer.

Price Action: ANGO shares are trading higher by 2.70% to $10.26, while MMSI shares are down by 0.84% at $83.55 on the last check Friday.