NEW BRIGHTON (AP) -- IntraTherapeutics Inc., a privately owned company that makes peripheral stents, is being acquired by Sulzer Medica for $145 million in cash, the companies announced Friday.
The deal, expected to close by March, is subject to approval of IntraTherapeutics' shareholders and U.S. regulators.
Sulzer Medica, a public company based in Winterthur, Switzerland, said the acquisition will expand its vascular business into the fast growing, highly profitable peripheral stent market.
Peripheral stents are expandable metallic tubes or coils inserted into the arteries of the legs, trunk, neck and shoulders when narrowed or clogged blood vessels slow or stop blood flow. The stents are inserted and pushed to the location by a catheter. Once in position, they are expanded to widen the vessel.
IntraTherapeutics, located in this northern Twin Cities suburb, has about 150 employees and recorded sales of approximately $20 million in news.
Sulzer Medica said it planned employment agreements with key management of IntraTherapeutics, paying retention bonuses and offering other bonuses based on performance, regulatory and research and development achievements.
"We are excited to develop our technology platform beyond heart valves and vascular grafts and to add on the experienced and proven management team of IntraTherapeutics," said Andre Buchel, chief executive of Sulzer Medica.
IntraTherapeutics generates 90 percent of its sales in the United States, where two-thirds of the world's stents are sold. Internationally, the company has sales in about 30 countries.
IntraTherapeutics will remain a stand-alone entity within Sulzer Medica.
Peripheral vascular diseases affect about one in every 20 people over the age of 50, the companies said. The peripheral stent market generated sales of about $300 million in 1999 and is estimated to grow more than 25 percent annually.
The deal will expand growth opportunities for IntraTherapeutics, said John Erb, IntraTherapeutics chief executive.
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