Abbott, St. Jude Medical to Sell $1.1 Billion in Assets
October 18 2016 - 9:20AM
Dow Jones News
Abbott Laboratories and St. Jude Medical Inc., in the midst of a
merger, said Tuesday they would sell certain businesses to Japanese
medical-equipment maker Terumo Corp. for about $1.1 billion as the
two American companies march toward completing their tie-up.
St. Jude Medical's stock rose 1.3% to $78.66 in premarket
trading, and Abbott shares were up 1.6% at $41.22.
The companies said they plan to sell a portion of their vascular
closure and electrophysiology businesses to Terumo after the St.
Jude Medical-Abbott transaction closes. No sale would occur if the
planned merger were to fall apart.
The divestiture, an all-cash transaction, will include St. Jude
Medical's Angio-Seal and Femoseal vascular-closure products and
Abbott's Vado steerable sheath. Abbott will retain its
vascular-closure products.
Abbott agreed in April to buy St. Jude Medical in a
cash-and-stock transaction then valued at $25 billion, a way to
bulk up its medical-devices business to better compete against
rivals Medtronic PLC and Boston Scientific Corp. Abbott anticipates
the deal closing by the end of the year.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 18, 2016 09:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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