ICU Medical, Inc. has entered into a definitive agreement to acquire Pursuit Vascular, Inc. for $75M with an additional earnout payment potentially due in 2021. Pursuit Vascular is a privately-held medical device company with a primary focus on innovative catheter disinfecting products and technologies to reduce costly bloodstream infections and lower healthcare costs.
Pursuit Vascular’s primary product is the ClearGuard® HD cap, which is used for the maintenance of hemodialysis catheters. Patients receiving dialysis treatments are at high risk of getting an infection because of the need to access their blood frequently. ClearGuard HD kills infection-causing bacteria and fungi inside of a hemodialysis catheter to help reduce infections. It is a safe, effective, and easy-to-use solution that has been shown in two large scale clinical studies to reduce bloodstream infections by approximately 70% when compared to current products.
Addressing catheter-line associated bloodstream infections is at the heart of many of ICU Medical’s consumables technologies, and ClearGuard HD provides natural synergies in this area. The acquisition of Pursuit Vascular will enhance ICU Medical’s consumables product offering across multiple geographies and customer channels, and the company will immediately add the product to existing domestic and international channels focused on both acute and non-acute care settings.
“ICU Medical has always been deeply focused on improving patient safety and creating the best workflow for clinicians. The ClearGuard HD is a natural extension of our needlefree IV connector and other infection control technologies, which together will provide best of breed solutions,” said Vivek Jain, CEO of ICU Medical. “We have been studying the category for a long time, and have been tracking the progress at Pursuit Vascular for more than two years. We believe the time is right for this acquisition because the product has shown clinical efficacy with untapped market potential, and the company has scaled up production capacity and know-how. ICU Medical has finished the majority of integration activities related to the 2017 Hospira Infusion Systems acquisition and can quickly integrate a logical bolt-on acquisition. Similar to our Excelsior acquisition a few years ago, this acquisition is the proper way to enter a market where we can both innovate and expand the category.”
“Pursuit Vascular is excited to be a part of ICU Medical”, explained Roy Martin, executive chairman of Pursuit Vascular. “Our ClearGuard HD is a leading-edge infection prevention device for dialysis procedures and a great fit with the existing product portfolio of ICU Medical. We are poised for international expansion using the global distribution capabilities of our new parent, and our innovative R&D capabilities are a perfect match with ICU’s long-standing reputation and culture of technology leadership. We believe this union is a great opportunity for our customers, our employees, and the clinical communities we serve.”
In the near term, Pursuit will continue to focus on penetrating the hemodialysis market. In the medium and longer-term, ICU Medical believes opportunities exist for category creation in adjacent markets and that the acquisition of Pursuit’s core competencies can add innovation to its broader market-leading consumables portfolio.
Pursuit Vascular’s full-year 2019 annual revenues are estimated to be between $10 and $12 million with margins comparable to the existing ICU Medical IV consumables business. The transaction will be funded with cash on hand and is not expected to have a material impact on the company’s current adjusted EBITDA and adjusted EPS guidance for 2019. ICU Medical will provide more details regarding the transaction on its upcoming earnings call.