AngioDynamics (Nasdaq:ANGO) announced that it completed the sale of its dialysis product portfolio to Merit Medical Systems.
Latham, New York-based AngioDynamics sold its dialysis portfolio and the BioSentry product for $100 million in cash. The transaction includes the DuraFlow, DuraMax, Evenmore, Schon XL, Trio-CT and Vaxel Plus hemodialysis catheter brands. It also includes the BioSentry product, a tract sealant system biopsy brand.
AngioDynamics said in a news release that the combined product portfolio generated $32 million in sales in 2023.
The company plans to use net proceeds to eliminate existing debt and support further strategic investments in growth and profitability. AngioDynamics said its divested assets are included in its medical device business and don’t have a significant amount of direct costs. As a result, the company expects a dilutive impact to adjusted earnings per share. It projects a slightly dilutive impact on corporate gross margins.
AngioDynamics now expects net sales for its recently completed fiscal year (May 31) to range between $338 million and $339 million. That amount remains inclusive of the dialysis portfolio and the BioSentry brand.
“I am excited to announce this divestiture, which supports our focus on our high-growth medtech platforms. While this deal divests strong product lines, we’re pleased with the value we’ve received for these assets, as the transaction strengthens our balance sheet and better positions us to focus on driving growth in our NanoKnife, mechanical thrombectomy and Auryon businesses,” said Jim Clemmer, president and CEO of AngioDynamics. “This is another significant step in our transformation, and finding an excellent partner to take on these leading dialysis and biopsy assets allows our team to more tightly align around the company’s core strategic platforms.”