CardioTech sells catheter business to Essel Propack

1 April 2008

CardioTech International, Inc. (AMEX: CTE), a developer and manufacturer cardiovascular products, has sold its subsidiary Catheter and Disposables Technology, Inc. to Tacpro, Inc. for about US$1.2m.

Tacpro, Inc., a subsidiary of Mumbai-based Essel Propack, specialises in catheters and delivery systems. Mr R Chandrasekhar, President of Essel Propack said, “The acquisition of CDT is in line with our stated strategic plan for the Medical Device Business. CDT will certainly expand our current foot print into a new geography and broaden our existing product lines”.

Nitin Matani, President and CEO of Tacpro said, "CDT represents an opportunity for Tacpro, Inc. to expand its presence in the Midwest region. The acquisition of CDT is the first step in achieving our strategic growth objective. We are excited at being able to extend additional resources, experience, and knowledge to our current and future customers."

Michael Adams, President and CEO of CardioTech, said, "The sale of CDT provides Tacpro, Inc. an excellent opportunity to expand its operations into the Minnesota medical device region. CardioTech's direction is targeted to being a world class technology business focused on customer-driven solutions in the medical device industry.

"The sale will permit the ongoing redeployment of capital into our growth initiatives focused on licensing and selling specialized materials to medical device manufacturers. The sale of CDT is an important milestone which allows CardioTech to direct management expertise and resources into executing the Company's strategic growth plan."