AngioDynamics said Tuesday it would buy privately held Navilyst Medical from owners Avista Capital Partners in a mixed cash and stock deal valued at $372 million. The transaction is expected to close, pending customary closing conditions, by the end of May.
Albany, N.Y.-based AngioDynamics said it wanted Navilyst to expand its presence in the cath lab and vascular access sectors. Navilyst, headquartered in Marlborough, Mass., makes catheters, vascular access equipment and the NAMIC line of fluid management products.
"NAMIC provides entrée for AngioDynamics' peripheral vascular portfolio in catheterization labs and with interventional cardiologists," the company said in a press release.
AngioDynamics said it will pay for the deal and related transaction costs with $97 million in cash on hand and a $150 million financing facility from J.P. Morgan, Bank of America and KeyBank National Association. The company will also give Avista 9.5 million shares of stock, valued at $14.20 per share as of Monday's close. Avista will also gain two new seats on AngioDynamics' board, the company said.
AngioDynamics expects the deal to be accretive to sales, operating income and earnings per share in fiscal 2013. Navilyst, which Avista bought from Boston Scientific in 2008, had sales of $149 million last year, AngioDynamics said.
Last week, AngioDynamics, which makes surgical, oncological and vascular access equipment, announced a temporary hold on U.S. shipments of its NanoKnife ablation system because of a software recall.