Highlights of Cryolife proposed acquisition of Jotec
- Cryolife is seeking an horizontal acquisition of Jotec AG, a German-based, privately-held developer of technologically differentiated cardiovascular stent grafts, and cardiac and vascular surgical grafts, focused on aortic repair. Cryolife on the other hand is a leading medical device and tissue processing company focused on cardiac and vascular surgery, hence its horizontal acquisition.
- On October 10, the two parties entered into a definite agreement for Cryolife to JOTEC Ag.
- The acquisition will strategically position Cryolife to become a market leader in the surgical markets as JOTEC will provide Cryolife with a broad range of highly competitive product portfolio focused on aortic surgery. The acquisition will also help Cryolife’s leverage JOTEC’s direct sales channels and improve Cryolife’s direct sales strategy in Europe where Cryolife presently has little presence in.
- In a statement, the Chairman of Cryolife, Mr Mackin stated ” “We also expect the JOTEC new product pipeline and R&D capabilities to drive longer-term growth beyond the five year horizon, particularly as their most innovative products enter the U.S. market. We plan to utilize CryoLife’s clinical and regulatory expertise to gain FDA approval for these products, which we believe will allow for entry into the U.S. market.”
- Cryolife will acquire JOTEC for an upfront payment of US$225million subjected to certain adjustments, including 75 percent in cash and 25 percent in CryoLife common stock issued to JOTEC’s shareholders.