Healthcare Industry News: vascular access
News Release - August 3, 2006
Theragenics(R) Acquires Vascular Access Device ManufacturerCompany Purchases Galt Medical Corp.
Continues Diversification Strategy
BUFORD, Ga.--(HSMN NewsFeed)--Aug. 3, 2006--Theragenics Corporation® (NYSE: TGX ), a medical device company serving the cancer treatment and surgical markets, announced today its acquisition of Galt Medical Corp. effective August 2, 2006. Galt, a privately held company, develops, manufactures and markets disposable medical devices utilized for vascular access, primarily serving the interventional radiology and interventional cardiology markets. Galt's current products include guidewires, micro-introducer kits and tear-away introducer sets and kits, and hemostasis valved introducer kits and sets. This transaction further diversifies Theragenics' medical device and surgical businesses and leverages the Company's existing strengths within these markets. Theragenics expects this acquisition to be EPS neutral in 2006 and accretive in 2007.
"The acquisition of Galt broadens our reach into medical devices by extending our offerings in this industry beyond our current portfolios. In Galt we have identified a fast growing company serving very attractive markets within the medical device industry," stated M. Christine Jacobs, CEO and President of Theragenics. "With our acquisition of CP Medical we found synergies with our brachytherapy business as well as opportunities to move into new directions within the medical device field. Galt now represents another significant step in our diversification strategy."
Net of approximately $2.1 million of cash acquired, Theragenics paid approximately $31.9 million for the acquisition of Galt. The purchase price consisted of approximately $28.8 million in cash and the issuance of 978,000 common shares valued at $3.1 million. Theragenics financed $7.5 million of the purchase price with borrowings on its existing $40.0 million credit facility.
Galt, based in Garland, Texas, had revenue of $7.1 million for the year ended December 31, 2005, and revenue of $5.1 million for the first six months of 2006. Galt's President, Jim Eddings commented, "We like the Theragenics team and their resources, expertise and understanding of quality medical devices. This should enable us to focus on opportunities in our own marketplace, accelerate our growth with existing products and significantly enhance our product development efforts."
Ms. Jacobs concluded the remarks by saying, "We are delighted to bring Galt into the Theragenics family. As we did with CP Medical, we are going to let Galt continue to do what they do best -- that is, manufacture and supply high quality vascular access devices. We will support them with our manufacturing, product development and marketing expertise. This acquisition furthers our diversification strategy and supports our effort to generate sustainable long-term growth. We intend to continue to execute our diversification strategy as we pursue current and additional markets as platforms for growth."
Theragenics will host a conference call today at 11:00 a.m. Eastern Time. To access the call, dial 800-538-9844 or 706-634-7274 and provide the conference ID code 3760898. This call is also being broadcast live over the Internet, and a recording will be available for one month on the Company's website. To access the webcast, log on to www.theragenics.com and select Investor Relations followed by selecting Company Presentations. You also can access a phone replay of the call until Midnight, August 10, 2006, by dialing 800-642-1687 or 706-645-9291 and providing the conference ID code: 3760898.
Theragenics Corporation (NYSE: TGX ) is a provider of brachytherapy and surgical products. Its brachytherapy business manufactures and markets its premiere product, the palladium-103 TheraSeed® device, and I-Seed, an iodine-125 based device, which are used primarily in the minimally invasive treatment of localized prostate cancer. Its surgical products business manufactures and distributes wound closure, needles and other surgical products used in the urology, veterinary, orthopedic and other markets through its CP Medical subsidiary, and disposable medical devices used for vascular access through its Galt Medical Corp. subsidiary. For additional information, call Theragenics' Investor Relations Department at (800) 998-8479 or visit www.theragenics.com.
This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks and uncertainties, including, without limitation, statements regarding the contribution of Galt Medical Corp. to Theragenics sales, impact on net income, future growth. and anticipated positive results in general. Actual results may differ materially due to a variety of factors, risks and uncertainties including, without limitation, risks and uncertainties related to the integration of Galt into the Theragenics organization, capitalization on opportunities for growth within the Galt business plan, ability to recognize value from areas of shared expertise, risks and uncertainties related to competition within the medical device industry, development and growth of new applications within the markets for vascular access, wound closure, brachytherapy and more broadly, medical devices, competition from other companies within the vascular access, wound closure and medical device markets, competition from other methods of treatment, new product and process development cycles, potential costs and delays associated with expansion and executing growth strategies, potential costs and delays in production optimization, effectiveness and execution of marketing and sales programs, changes in pricing of raw materials or changes in relationships with key suppliers, third-party (including CMS) reimbursement, Congressional action affecting Medicare reimbursement, physician training, third-party distribution agreements, and other factors set forth from time to time in the Company's Securities and Exchange Commission filings.
All forward looking statements and cautionary statements included in this document are made as of the date hereby based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward looking statement or cautionary statement.
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