From Earlier: AngioDynamics to Acquire Navilyst Medical for $372M

AngioDynamics ANGO announced it has entered into a definitive agreement to acquire privately-held Navilyst Medical in a transaction valued at $372 million based on yesterday's closing stock price of $14.20. Navilyst Medical is a global medical device company with particular strengths in the vascular access, interventional radiology and interventional cardiology markets. Avista Capital Partners acquired the business from Boston Scientific in 2008, and it generated sales of $149 million in calendar 2011. The acquisition will significantly expand AngioDynamics' scale, doubling its share of the Vascular Access market while building critical mass in the peripheral vascular market. The transaction will be accretive to net sales growth, EBITDA margin and earnings per share. Based on an expected closing in the fiscal fourth quarter of 2012, AngioDynamics expects the following financial impact of the transaction: Net Sales Pro forma net sales of approximately $360 million in FY13. Non-GAAP EBITDA Pro forma adjusted EBITDA of approximately $60 million in FY13, excluding transaction-related costs and non-recurring costs. Net Cost Savings Net cost savings are expected to be approximately $5-7 million in FY13, excluding associated one-time costs, and increase to approximately $10-15 million on a run-rate basis over a 2-3 year period. EPS Accretive to non-GAAP EPS by at least $0.08 per share in FY13, excluding transaction-related costs and non-recurring costs. Tax Benefits Acquired tax assets will produce $11.5 million, or $0.32 per share, in annual cash tax savings each year from FY13 to FY23. Cumulative cash tax savings will amount to $130 million, or $3.65 per share, through FY24. On a present value basis, the acquired tax assets reduce the effective purchase price by approximately $80 million, to $292 million.