Nov. 28, 2014, 10:45 AM
- Medtronic (MDT +1.3%) secures EU approval for its $43B acquisition of Covidien plc (COV +1%) contingent on, as expected, Covidien selling Stellarex, its drug-coated angioplasty balloon. Spectranetics (SPNC +1.9%) agreed to purchase Stellarex several weeks ago for $30M. The FTC recently gave its blessing to the transaction as well.
- Previously: FTC clears Medtronic/Covidien marriage
- Previously: Spectranetics buys Covidien's DCB platform
Nov. 26, 2014, 3:57 PM
- The Federal Trade Commission approves the merger between Medtronic (MDT +1%) and Covidien plc (COV +1.2%) with the proviso that Covidien divest its drug-coated catheter business before completing the transaction. Covidien agreed to sell the business for $30M to Spectranetics (SPNC +1%) several weeks ago.
- Previously: Medtronic buying Covidien for $42.9B
Nov. 3, 2014, 8:11 AM
- Spectranetics (NASDAQ:SPNC) acquires Covidien's (NYSE:COV) Stellarex drug coated angioplasty balloon (DCB) platform for $30M. The company expects it to be a revenue catalyst beginning in 2015 and has the potential to deliver $100M to the top line within 2-3 years of commercialization in the U.S. Management expects it to be accretive to non-GAAP operating income, ex-items, in the first year following the start of the U.S. launch.
- Research and development related to Stellarex will dilute 2015 earnings $28M - 32M or $0.65 - 0.75 per share, however.
May 27, 2014, 6:53 PM
- Spectranetics (SPNC) is buying AngioScore, a maker of cardiovascular balloons, for $230M up-front ($115M apiece in cash and stock), plus contingent commercial/regulatory milestone payments.
- The deal, which broadens Spectranetics' product line, is expected to close around the end of June. Spectrnetics expects it to be accretive to 2015 adjusted EBITDA, and to yield $8M-$10M in pre-tax cost synergies.
- To help pay for the acquisition, Spectranetics is selling $200M worth of convertible senior notes due 2034. The underwriter will have a $30M overallotment option.
SPNC vs. ETF Alternatives
The Spectranetics Corpdevelops, manufactures, markets and distributes single-use medical devices. Its products are used to cross, prepare, and treat arterial blockages in the legs and heart and to remove pacemaker and defibrillator cardiac leads.
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