St. Jude, Abbott Sell Products to Terumo for $1.12 BillionBy
Abbott Laboratories and St. Jude Medical Inc. will divest some of their cardiovascular products to Terumo Corp. for $1.12 billion in order to complete the $25 billion deal between the two medical device giants.
The all-cash transaction is conditioned on Abbott’s successful acquisition of St. Jude and antitrust regulatory approval, the companies said Tuesday in a statement. The sale includes St. Jude’s Angio-Seal and Femoseal vascular-closure products, and Abbott’s Vado Steerable Sheath, the companies said.
Terumo, a medical equipment maker based in Japan, markets and sells products in the U.S., Europe and Asia. Abbott and St. Jude announced their merger valued at $25 billion in April and have said it’s expected to close by the end of the year. The sale was made to “satisfy regulatory review,” according to Candace Steele Flippin, a spokeswoman for St. Jude.
Abbott will retain its vascular-closure products, and doesn’t expect the sale to have a major impact on its earnings, according to the statement.