BURLINGTON, Mass., June 22, 2020 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq: LMAT) announced that it has acquired the business and assets of Artegraft, Inc. for $90.0 million, including $72.5 million in cash paid at closing ($65.0 million to Artegraft plus $7.5 in escrow to be released December 31, 2021) as well as potential earnout payments of $17.5 million payable based upon future sales of the acquired business. Under the terms of the deal, LeMaitre will continue to operate Artegraft’s manufacturing facility in North Brunswick, NJ for at least three and a half years and will retain most of Artegraft’s employees, including seven sales & marketing personnel.
Artegraft processes and sells biologic vascular grafts that are derived from bovine carotid arteries and are implanted primarily in hemodialysis access patients. The products are marketed under the brand Artegraft® and are sold only in the US. Artegraft generated trade sales of $15.6 million and estimated hospital-level sales of $18.6 million during the twelve-month period ended May 31, 2020. Artegraft’s unit sales grew 10% in 2019.
Dave Roberts, LeMaitre Vascular’s President, commented, “We are pleased to add Artegraft to our product offering, augmenting the suite of biologic and dialysis access products used by our core customer, the vascular surgeon. With this acquisition, we expect Artegraft to be the largest product line in our US sales bag and the cornerstone of our offering of devices used to treat patients with end-stage renal disease.”
Rick Gibson, CEO of Artegraft, commented, “With their focus on hemodialysis access procedures, biologic implants, and the vascular surgeon, LeMaitre Vascular is ideally positioned to build on Artegraft’s success. We look forward to working with the LeMaitre team to ensure a smooth transition of the business.”
LeMaitre Vascular financed the acquisition and related expenses with available cash on hand and a $65.0 million senior secured credit facility. The credit facility comprises a $40.0 million five-year term loan and a $25.0 million revolver and was provided by KeyBank National Association and Truist Bank.
SVB Leerink acted as exclusive financial advisor and Lowenstein Sandler LLP served as legal counsel to Artegraft. Cooley LLP served as legal counsel to LeMaitre Vascular.
LeMaitre Vascular expects the acquisition to be accretive to profits in the first 12 months following the closing. Further guidance on how this acquisition will affect LeMaitre Vascular’s 2020 revenue, operating income and EPS expectations will be provided at the Company’s Q2 2020 earnings call in July.
About LeMaitre Vascular
LeMaitre Vascular is a provider of devices, implants and services for the treatment of peripheral vascular disease, a condition that affects more than 200 million people worldwide. The Company develops, manufactures and markets disposable and implantable vascular devices to address the needs of its core customer, the vascular surgeon. The Company's diversified product portfolio consists of brand name devices used in arteries and veins outside of the heart. Additional information can be found at www.lemaitre.com.