LONDON, UK / ACCESSWIRE / November 20, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Merit Medical Systems, Inc. (NASDAQ: MMSI) ("Merit"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=MMSI. The Company announced on November 16, 2017, that it has entered into a purchase agreement with Becton, Dickinson and Co. (NYSE: BDX) ("BD") to acquire certain assets which the latter proposes to sell in connection with its proposed acquisition of C.R. Bard, Inc. (NYSE: BCR) ("Bard"). The acquisition price for the product lines and related assets is $100 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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The acquisition is subject to the closing of BD's proposed acquisition of Bard, and other regulatory and customary closing conditions.
Assets to be Acquired
The assets to be acquired by Merit, as part of the deal, includes soft tissue core needle biopsy products, currently sold by BD under the trade names of Achieve™ Programmable Automatic Biopsy System, Temno™ Biopsy System, and Tru-Cut™ Biopsy Needles. Merit also proposes to acquire the Aspira® Pleural Effusion Drainage Kits and the Aspira® Peritoneal Drainage System, currently marketed by Bard and sold primarily in the United States.
Financial Implications of the Transaction
Merit intends to finance the acquisition at closing through borrowings from lenders under its existing long-term credit facility. The Company anticipates that its debt to adjusted EBITDA will increase from approximately 2.20 to approximately 2.70. The transaction is expected to be accretive to both GAAP and non-GAAP earnings in 2018, including the anticipated impact of incremental interest expenses associated with financing the transaction.
The acquisition is expected to provide incremental annual revenues in the range of $42 million - 48 million; adjusted gross margins for the subject product lines in the range of 60% – 70%; and, over a period of six to twelve months, to be accretive by 50 basis points – 120 basis points to Merit's adjusted gross margins. Merit expects the acquisition to provide $0.10 – $0.19 in adjusted non-GAAP earnings per share accretion in the fiscal year 2018.
Transaction between BD and Bard Expected to Close in Q4 2017
Vincent A. Forlenza, Chairman and Chief Executive Officer (CEO) of BD, stated that the announcement of the intent to divest two product lines is another step forward in the regulatory review process of BD's planned acquisition of Bard. It is expected that the BD and Bard transaction will close in the fourth calendar quarter of 2017, subject to customary closing conditions and additional regulatory approvals, including the US Federal Trade Commission and other regulatory bodies.
Transaction to Provide Complementary High-Margin Products to Merit
Fred P. Lampropoulos, Chairman and CEO of Merit, stated that this purchase is a perfect fit for Merit. The products are well established and complement Merit's CorVocet™ Full Core Biopsy System and its recently-acquired bone biopsy products. There are also a number of markets in which Merit has direct representation that will be expanded to include the acquired products. Lampropoulos added that this transaction will provide complementary high-margin products, increased use of the Company's existing facilities, market expansion opportunities, accretive margins, profits, and its existing sales force utilization.
About Merit Medical Systems, Inc.
Merit was founded in 1987, and is headquartered in South Jordan, Utah. The Company is engaged in the development, manufacture, and distribution of proprietary disposable medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, and endoscopy.
Last Close Stock Review
Merit Medical Systems' share price finished last Friday's trading session at $40.60, marginally sliding 0.61%. A total volume of 479.38 thousand shares have exchanged hands, which was higher than the 3-month average volume of 373.70 thousand shares. The Company's stock price skyrocketed 19.41% in the past six months and 76.52% in the previous twelve months. Additionally, the stock soared 53.21% since the start of the year. Shares of the Company have a PE ratio of 67.33 and currently have a market cap of $2.05 billion.
At the closing bell, on Friday, November 17, 2017, Becton, Dickinson's stock marginally slipped 0.55%, ending the trading session at $220.31. A total volume of 719.69 thousand shares have exchanged hands. The Company's stock price surged 10.61% in the last three months, 19.23% in the past six months, and 27.04% in the previous twelve months. Moreover, the stock soared 33.08% since the start of the year. The stock is trading at a PE ratio of 47.33 and has a dividend yield of 1.33%. The stock currently has a market cap of $50.41 billion.
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