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Notable Mergers and Acquisitions of the Day 12/26: (COV) (FSIN) (BDX)

December 26, 2012 9:58 AM EST Send to a Friend
* Covidien (NYSE: COV), a leading global provider of healthcare products, today announced a definitive agreement to acquire CV Ingenuity. The companies expect to complete the acquisition in the first calendar quarter of 2013. Financial terms of the transaction were not disclosed.

CV Ingenuity, a privately-held company based in Fremont, CA, is focused on improving patient outcomes in the treatment of peripheral arterial disease (PAD) by providing solutions to relieve vascular obstructions, inhibit restenosis, and allow natural vessel healing. The company's core technology, while still in the investigational phase, is a Drug Coated Balloon (DCB) platform with a novel, proprietary, tunable, rapid-release system.

As a result of this transaction, Covidien expects to increase research and development expenditures for the next several years to fund the clinical development of CV Ingenuity technologies. Additional expenditures are expected to be more than $20 million in the second half of fiscal 2013 and more than $30 million in fiscal 2014. Despite these additional expenditures and the negative impact on selling, general and administrative expenses from the transaction, Covidien is reaffirming all of its prior guidance ranges, which were last updated on November 9, 2012. Also, Covidien does not anticipate receiving United States Food and Drug Administration approval for a DCB product using the CV Ingenuity technology until fiscal 2017.

Once the transaction has been completed, Covidien will report the CV Ingenuity business as part of its Vascular product line in the Medical Devices segment.

* Fushi Copperweld, Inc. (Nasdaq: FSIN) issued the following update with respect to the Agreement and Plan of Merger, dated as of June 28, 2012, among the Company, Green Dynasty Limited, Green Dynasty Acquisition, Inc. ("Merger Sub"), and Green Dynasty Holdings Limited, pursuant to which Merger Sub will merge with and into the Company and the Company will continue as the surviving corporation and will be a wholly-owned subsidiary of Green Dynasty:

"We expect to complete the Merger today, December 26, 2012. We are requesting that shares of the Company common stock cease trading on NASDAQ immediately prior to the opening of the market on December 27, 2012. We anticipate that the paying agent for the Merger will commence payment of the Merger consideration to stockholders beginning on December 27, 2012. Stockholders of record who hold shares in certificated form will receive a letter of transmittal to allow them to deliver their share certificates to the paying agent in exchange for the Merger consideration. Stockholders who hold shares through a bank or broker will not have to take any action to receive cash for their shares, as such payments will be handled by the bank or broker."

* BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, announced today that it has completed its acquisition of Safety Syringes, Inc., a privately held California-based company that specializes in the development of anti-needlestick devices for prefilled syringes. The financial terms were not disclosed.

The acquisition broadens BD's healthcare worker safety offering to include passive safety technologies for any prefillable syringe customer.

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