AngioDynamics Announces Asset Purchase Agreements
by
Joan Trombetti, Writer | April 21, 2008
AngioDynamics
AngioDynamics a leading provider of innovative medical devices used by interventional radiologists, nephrologists and surgeons for the minimally invasive treatment of cancer and peripheral vascular disease has entered into asset purchase agreements with Diomed Holdings, Inc., Diomed, Inc. and Diomed Limited for the acquisition of certain assets of Diomed's business in the United States and United Kingdom.
The agreement with Diomed Holdings, Inc. and Diomed, Inc. is subject to an auction process administered by the bankruptcy court, as a result of Diomed's Chapter 11 bankruptcy proceedings, which commenced on March 14, 2008, and other customary closing conditions.
AngioDynamics has agreed to pay $8 million in cash for the assets of Diomed's U.S. business engaged in the sale of systems for the endovenous laser treatment of varicose veins. In addition, AngioDynamics has agreed to pay $3 million in cash for the assets of Diomed's U.K. business based in Cambridge, England. Diomed's U.K. operations manufacture and distribute systems used in the endovenous laser treatment of varicose veins and was placed under the control of a U.K. Insolvency Administrator on March 14, 2008. The offer to purchase Diomed's U.S. assets is conditioned upon AngioDynamics' purchase of Diomed's U.K. assets.
The offer to purchase Diomed's U.K. assets is conditioned upon the entry of an order in the U.S. bankruptcy court authorizing the purchase of the U.S. assets.
The agreements do not provide for the acquisition of any interest in Diomed's legal judgment award against Vascular Solutions, and AngioDynamics is not assuming any potential liability with respect to Diomed's litigation with VNUS.
Under the Agreement with Diomed Holdings and Diomed Inc., AngioDynamics may provide up to $1.3 million in debtor-in-possession financing that will be secured by a perfected first priority lien on all of Diomed's assets in the United States and will be repayable together with interest on the earlier of the closing of the contemplated asset purchase, the closing of an alternative transaction, or May 30, 2008.
