Abbott and St. Jude to Sell Portion of Vascular Closure and Electrophysiology Businesses to Terumo
October 18, 2016—Abbott Vascular and St. Jude Medical, Inc. announced an agreement in principle to sell certain products to Terumo Corporation. The transaction reflects a purchase price of approximately $1.12 billion and is subject to the successful completion of Abbott’s acquisition of St. Jude Medical and antitrust regulatory approvals. Abbott, St. Jude Medical, and Terumo are bound by the terms of an exclusivity agreement.
According to the companies, the divestiture is an all-cash transaction that will include the products globally for St. Jude Medical’s Angio-Seal and Femoseal vascular closure products and Abbott’s Vado steerable sheath. Abbott will retain its vascular closure products, which include the Perclose ProGlide suture-mediated closure system, StarClose SE vascular closure system, and Prostar XL percutaneous vascular surgical system.
In April, the companies announced a definitive agreement for Abbott to acquire St. Jude Medical in a transaction valued at $25 billion. After the closing of the transaction, the combined business will compete in nearly every area of the cardiovascular market, including atrial fibrillation, structural heart, and heart failure, as well as in the neuromodulation market.