Medrad and Possis Medical to merge
18 February 2008
Bayer HealthCare affiliate Medrad, Inc and Possis
Medical, Inc. have announced that they have agreed to merge. Medrad will
acquire Possis Medical for about US$361 million. The offer price represents
a premium of approximately 39% over Possis Medical's recent share price.
Medrad makes contrast injection systems used to diagnose cardiovascular and
other diseases. Possis Medical provides mechanical thrombectomy devices used
to treat narrowed or blocked arteries and veins. The proposed merger will
join two leaders in their respective fields, and underscores Medrad's's
commitment to the treatment of patients in the growing cardiovascular
Cardiovascular disease remains one of the main causes of death and
disability in the United States and Europe and it is estimated that in the
United States alone, more than 80 million people are affected by some form
of cardiovascular disease.
"This merger will capitalize on both companies' strengths to deliver
growth in our current markets, and create a formidable cardiovascular
portfolio in the future," said John Friel, Medrad President and CEO. "We
welcome Possis Medical as the cornerstone of Medrad's cardiovascular
strategy. It is a truly compatible partnership in terms of product
performance, company growth and employee culture."
"Our shared history of
innovation bodes well for product development beyond our core businesses,
and provides tremendous opportunity for growth for our business and
employees. In addition, Medrad will enable us to broaden our geographic
reach without adding infrastructure. We look forward to joining the Bayer
and Medrad organization," said Possis Medical President and CEO Robert G.
Headquartered near Minneapolis, Minnesota, Possis Medical posted
revenues of $67 million and employed approximately 280 people for its fiscal
year ending July 31, 2007.
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