Cooper Companies Completes $300M Acquisition of Select Cook Medical Assets to Strengthen Reproductive Health Portfolio

Nov 03, 2023 00:01 CST Updated 00:02

The Cooper Companies

Global Medical Device R&D and Manufacturer

Cook Medical

Medical Device Developer

Source: Siyu MedTech; Editor: Jacky

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On November 1, 2023, The Cooper Companies (NYSE: COO) announced the completion of its acquisition of certain assets from Cook Medical, primarily involving businesses in the obstetrics, Doppler monitoring, and gynecological surgery markets.Other departments within Cook’s original organizational structure will continue to operate as a privately held family-owned business.

The acquisition price is $300 million (approximately RMB 2.2 billion), with $200 million paid upon closing of the transaction and the remaining $100 million payable in two annual installments of $50 million each.

# The Cooper Companies Acquires Certain Assets of Cook Medical

Al White, President and Chief Executive Officer of The Cooper Companies, stated that this acquisition represents an excellent strategic fit for CooperSurgical. The acquired products are highly synergistic with CooperSurgical’s existing medical device portfolio and reinforce CooperSurgical’s position as a global leader in fertility and women’s health.

For over 40 years，Cook MedicalConsistently focused on reproductive health, we have successfully developed products for obstetrics and gynecology, in vitro fertilization (IVF), and assisted reproductive technology (ART).Cook MedicalIn Reproductive HealthofFieldFull ofInnovation, AssistancePatients realized their dream of having a family, including the development of the first needle specifically designed for in vitro fertilization treatment.

The assets of Cook Medical acquired in this transaction are primarily minimally invasive medical devices, including the Bakri® Uterine Balloon Tamponade, Cook’s Cervical Dilation Balloon, the Doppler blood flow monitoring product portfolio, and other surgical products.As of September 30, 2023, the revenue of the acquired assets for the trailing twelve months was approximately US$56 million.

Cook Medical’sWilliam Cook Australia, Cook Spencer, and Cook Vandergrift currently all manufacture reproductive health devices.Following the completion of the transaction, Cook will continue to manufacture these products for CooperSurgical during a two-year transition period and will also expand manufacturing capacity to keep pace with growth. Thanks to this collaborative arrangement, the transaction will not result in layoffs within the production departments. During the transition period, employees in the production departments associated with these products will continue their existing roles. Ultimately, through cross-training, they will be enabled to manufacture other Cook Medical products.

As part of The Cooper Companies’ fiscal 2024, the transaction is expected to drive a 5–7% year-over-year revenue growth at constant currency. Excluding one-time charges and transaction-related amortization, the deal is projected to expand non-GAAP gross margin and operating profit, and to increase non-GAAP earnings per share by approximately $0.20.

Cooper Companies will begin classifying these assets as part of the office and external operations within its CooperSurgical business starting in the first fiscal quarter of 2024.Report on a subset of the specialty categories.

# FTC Intervention Led to Termination of Acquisition

In February 2022, The Cooper Companies and Cook Medical signed a binding letter of intent,The former plans to acquire the latter’s reproductive health business for $875 million (approximately RMB 6.3 billion).。

However, the transaction faced regulatory opposition in August 2022. Subsequently, the U.S. Federal Trade Commission (FTC) launched an investigation into the acquisition to determine whether it posed potential anti-competitive concerns.

In August 2023, after an investigation by the U.S. Federal Trade Commission, CoBoston Scientific Announces Abandonment of $875 Million Acquisition of Cook Medical’s Reproductive Health Business

Actually, The Cooper CompaniesViewing the acquisition of Cook Medical as a means to strengthen its influence in the Asia-Pacific region. June 2023,Cooper CompaniesChief Executive Officer Albert White statedCook MedicalIts strong performance in the reproductive health market in the Asia-Pacific region was one of the key drivers behind this transaction.Cooper CompaniesMarket share in some regions is minimal, necessitating increased staffing and infrastructure.

# About Cook Medical

Cook Medical was founded in 1963 by Mr. Bill Cook and his wife. It is a medical device company from Indiana, USA. Cook Medical has left a permanent, historic, and far-reaching mark in the field of minimally invasive medicine and is one of the earliest minimally invasive device companies to enter the field of vascular interventional diagnosis and treatment.

Currently, Cook Medical’s business spans 135 countries and regions worldwide, evolving into a company of global scale with products covering more than 60 medical specialties. Its manufacturing facilities are primarily located in the United States, Europe, and Australia. Globally, it operates six major logistics distribution centers and multiple local warehousing and distribution hubs, employing over 10,000 people.

Cook Medical has maintained its family-owned business model since its inception. Cook Medical’s products have been present in the Chinese market for over 30 years. In 2008, Cook (China) Medical Trading Co., Ltd. was established in Shanghai. Currently, Cook China operates two offices in Shanghai and Beijing, with the Shanghai office serving as its operational headquarters.

# About The Cooper Companies

The Cooper Companies, headquartered in San Ramon, California, is the third-largest contact lens company globally and ranks first in toric contact lenses. It comprises two business segments: CooperVision and CooperSurgical.

CooperVision provides contact lenses and vision correction products, including silicone hydrogel and flexible gas-permeable contact lenses. CooperVision has also developed various proprietary technologies, such as Biofinity® design and Biocompatibility® design, to deliver more comfortable and better-fitting vision solutions.

CooperSurgical is its reproductive health division, dedicated to advancing the health of women, infants, and families through a diversified portfolio of products and services focused on medical devices, fertility, and genomics.

The company has more than 15,000 employees and sells its products to over 130 countries and regions. The Cook Reproductive Health division, which was originally planned for acquisition, was expected to be integrated into the CooperSurgical business unit.

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