ICU Medical Said to End Sale Process After Not Finding BuyerDavid Welch, Jodi Xu and Joshua Fineman
ICU Medical Inc., the producer of intravenous medical systems that put itself up for sale in May, has ended the process without finding a buyer, two people with knowledge of the matter said.
ICU, which was working with JPMorgan Chase & Co., held talks with buyers including private-equity firm GTCR LLC, one of the people said, asking not to be identified as the information is private. In its quarterly report filed this week, the San Clemente, California-based company said it incurred one-time charges of about $800,000 “associated with a strategic transaction that did not go forward,” without offering more details.
GTCR held exclusive talks with ICU in August, people with knowledge of the matter said at the time. The Chicago-based firm backed away from the deal because it couldn’t agree on a price with ICU, one of the people said recently. While there is a chance a buyer may come back, ICU is not holding active negotiations with anyone currently, one of the people said.
ICU Chief Financial Officer Scott Lamb, who handles media inquiries, didn’t immediately return a call seeking comment on the sale process. A spokeswoman for GTCR declined to comment.
ICU fell 6.4 percent to $63.66 as of 4 p.m. in New York today.
ICU’s founder George Lopez stepped down from his role as chief executive officer for health reasons, the company said on Oct. 21. Lopez, who owns an 11 percent stake in ICU, would be one of the primary beneficiaries of a sale of the company, data compiled by Bloomberg show. Steven Riggs, vice president of operations for ICU, will serve as acting CEO, the company said.
ICU got its start almost 30 years ago when Lopez began working on a device to prevent IV lines from accidentally disconnecting, the company’s website shows. Among its products is a connector called the Clave, which doctors or nurses use to attach the feed from a nutrition or saline bag, or a dose of medicine, into a patient’s IV port, using a sterile, needle-free connection.