Interventional radiology vendor Merit Medical announces $105M acquisition
Merit Medical Systems Inc. is acquiring certain assets from a rival company for $105 million, the interventional radiology vendor announced Monday.
Based in South Jordan, Utah, Merit is purchasing rights to the EsophyX Z+ device from EndoGastric Solutions. The move expands Merit’s endoscopy portfolio, adding a minimally invasive solution for patients suffering from chronic gastroesophageal reflux disease (GERD).
Leaders project that the deal will add about $30 million in annual revenue, propelling Merit into the GI endoscopy space while leveraging its existing commercial footprint.
“This acquisition is consistent with our continued growth initiatives. It enhances our product portfolio in existing clinical specialties while expanding our global footprint in the multibillion dollar gastrointestinal market,” CEO Fred P. Lampropoulos said July 1. “We look forward to helping more patients by providing clinicians with a sustained and minimally invasive treatment option for chronic GERD.”
The EsophyX Z+ allows physicians to offer a nonpharmacological alternative, treating GERD by restoring the body’s reflux barrier. EndoGastric Solutions generated about $26 million in revenue from the product last year. Lampropoulos and colleagues said they expect this to continue, with the acquisition adding between $13 million to $15 million from the closing date through the end of 2024.
Founded in 1987, the company specializes in the development, manufacturing and distribution of proprietary disposable devices used in interventional, diagnostic and therapeutic procedures. Merit Medical is focused in radiology, cardiology, oncology, critical care and endoscopy, employing about 7,000 individuals worldwide.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.