Endo Health sells HealthTronics (Urology) for up to $130M

[Anonymous]

Endo Health sells HealthTronics for up to $130M
12:12 PM ET, 01/09/2014 - Associated Press

CHADDS FORD, Pa. -- Endo Health Solutions said Thursday it will sell its HealthTronics urology unit for up to $130 million as it streamlines its business.

Investment firm Altaris Capital Partners will pay $85 million upfront for HealthTronics, and Endo could get an additional $45 million based on the performance of the business. Endo expects the sale to close during the first quarter.

Endo spent several years expanding from a drug company to a larger drug and medical device maker. It spent around $4.5 billion on a spate of acquisitions, and bought HealthTronics in July 2010 for $223 million. In June, Endo said it would explore strategic options for HealthTronics and for its branded drug development platform, and also said it planned to eliminate about 700 jobs and cut $325 million in annual spending.

CEO Rajiv De Silva said Endo will focus on branded drugs, generic drugs made by its Qualitest unit, and its American Medical Systems business, which sells urology products and services. It will also focus on developing drugs that will bring it more revenue in the near future, including generics and lower-risk projects.

The company has already sold two HealthTronics units for about $25 million in total. Those businesses provide image-guided radiation therapy and anatomical pathology lab work.

Shares of Endo Health Solutions Inc. fell $1.04 to $68.89 in midday trading.

 

[Anonymous]

ENDO ANNOUNCES DIVESTITURE OF HEALTHTRONICS

Altaris Capital Partners to acquire HealthTronics for a total consideration of up to $130 million including $85 Million in cash upfront

HealthTronics is a national provider of urological products and services

MALVERN, Pa. – Jan. 9, 2014 – Endo Health Solutions (Nasdaq: ENDP) today announced it has entered into a definitive agreement to sell its HealthTronics business to Altaris Capital Partners, LLC for an upfront cash payment of $85 million, subject to cash and other working capital adjustments. In addition, Endo will receive rights to additional cash payments of up to $45 million based on the future operating performance of HealthTronics for a total consideration of up to $130 million. The company previously divested two operating divisions of HealthTronics, its image guided radiation therapy (IGRT) and its anatomical pathology laboratory businesses, for total consideration of approximately $25 million.

“The divestiture of HealthTronics enables us to focus more sharply on achieving our objective of building Endo into a leading product-based specialty healthcare company,” said Rajiv De Silva, president and CEO of Endo. “I am pleased that the agreement with Altaris will provide an opportunity for the employees of HealthTronics to join an organization that will focus on growing this leading provider of products and services to U.S.-based Urologists.”

Today’s transaction and the earlier announced sale of HealthTronics’ anatomical pathology business and IGRT business completes Endo’s full divestiture of all HealthTronics businesses.