AngioDynamics sells PICC, Midline product portfolios for up to $45M in cash

AngioDynamics announced that it has completed the sale of its PICC and Midline product portfolios to Spectrum Vascular, an innovative medical device company focused on vascular access and medication management, for up to $45 million in cash. The transaction consists of AngioDynamics’ PICC, Midline and tip location products. This combined portfolio of products contributed approximately $43.5 million in annual sales during AngioDynamics’ fiscal year 2023. The Company also announced that it has discontinued the sale of its Uniblate and Starburst Radio Frequency products, as well as its Syntrax support catheter products to further streamline its product portfolio. These products contributed approximately $5.5 million in annual sales during AngioDynamics’ fiscal year 2023. “Today’s divestiture is another significant milestone in our transformation and supports our focus on driving increased penetration of our Med Tech platforms in high-growth markets. It builds upon the divestiture of our Dialysis and Biosentry businesses that we announced in June as well as the plan we announced in January to streamline our manufacturing operations,” said Jim Clemmer, President and Chief Executive Officer of AngioDynamics. “This transaction, combined with the discontinuation of our radiofrequency ablation and Syntrax products, further strengthens our balance sheet, optimizes our product portfolio and deepens our strategic focus on driving growth and profitability within our NanoKnife, Mechanical Thrombectomy and Auryon businesses.” The transaction consideration consists of $34.5 million paid at closing, an earnout related to sales of the divested products over the next two years equal to $5.5 million, and a milestone payment of $5 million paid upon final transfer of the manufacturing of the divested products to a third-party manufacturer. In connection with the transactions announced today, the Company will eliminate certain sales, marketing and operational expenses. Today’s transaction, inclusive of the restructuring, is expected to be slightly dilutive to fiscal 2024 adjusted earnings per share. The Company will provide updated fiscal 2024 financial guidance on its fiscal third quarter earnings call in early April.