C. R. Bard to Acquire Rochester Medical

R. Bard (Murray Hill, NJ, USA) has announced that it has entered into a definitive agreement to acquire Rochester Medical (Stewartville, MN, USA), a developer and supplier of silicone urinary incontinence and urine drainage products.

Rochester Medical markets an extensive line of innovative products for male incontinence patients and currently has a product leadership position with the differentiated Magic 3 intermittent self-catheter (ISC). The Magic 3 incorporates an innovative multilayer construction specifically designed with a soft outer layer and hydrophilic coating to reduce irritation of the urethral tissue, while having a firm inner layer for ease of insertion.

The acquisition provides the platform for a combined portfolio that will assist Bard to compete in the global urology homecare market. Under the terms of the merger agreement, the shareholders of Rochester Medical will receive approximately USD 262 million in the aggregate.

“Rochester’s double-digit growth product portfolio, including their customer access programs, is a key building block in our strategy to access faster growing markets over the long-term,” said Timothy M. Ring, chairman and CEO of Bard. “We believe that strengthening our position in the home care market, and specifically the large and fast-growing intermittent self-catheter segment, is strategically important at this time.”

“Our agreement with Bard represents an attractive valuation for Rochester Medical shareholders, and as an all cash offer, provides liquidity for shareholders,” said Anthony J. Conway, CEO and President of Rochester Medical. “We believe the merger represents a great opportunity for the combined companies to create a broad product portfolio by offering a more comprehensive range of high-quality urological and continence care products to our customers.”

By 2018, an estimated 1.1 billion individuals worldwide will be affected by some form of lower urinary tract or bladder outlet obstruction; urinary retention and incontinence are common chronic conditions among these patients, resulting from radical prostatectomy, benign prostatic hyperplasia (BPH), or aging. The chronic condition is typically managed with incontinence pads or male external catheters. In the case of urinary retention, a patient may need to self-catheterize up to 2,000 times per year.

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