Healthcare technology developer CareFusion Corporation (NYSE: CFN) will acquire 40% of Israeli infusion pump systems manufacturer Caesarea Medical Electronics Ltd. (CME) for $100 million, giving a company value of $250 million (NIS 875 million). CareFusion collaborates with CME, including the purchase of its technology.
CME CEO Zvi Barak founded the company in 1993, and he and his wife, Anat, are the sole shareholders in equal shares. No Israeli or foreign venture capital funds have ever invested in the company. CME carries out all its manufacturing in Israel and has 250 employees.
CME develops and produces a range of infusion and syringe pumps and related accessories and disposable administration sets for hospitals and homecare use. The company's infusion pumps are known for their compact and highly portable design, making them ideal for specialty applications such as IV and epidural anesthesia and pain management, infusions during MRI procedures, hospital and home nutrition, and other uses. The pumps are sold in 60 countries worldwide, mostly outside the US.
CareFusion has the right to make additional investments to increase its stake to become the majority owner of CME. CME will continue to operate independently from CareFusion, including the retention of its existing distributor network in its markets.
CME said, "CareFusion's becoming a major shareholder in the company will enable us to increase our business and expand our global deployment to new countries. We will continue to operate as an independent company based in Israel, and keep our network of distributors. In the coming months, we plan to complete construction of a new building as part of the expansion of our plan in the Caesarea industrial park. The company has always taken care to provide job diverse opportunities to its employees and potential workforce from the area, and we hope to continue to do so."
"This investment creates a strategic, long-term relationship with CME, which has great people and great technology that is very complementary to our infusion portfolio," said CareFusion chairman and CEO Kieran Gallahue.
The deal was led by Leumi Partners mergers and acquisitions unit headed by Oded Tal.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2013
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