Teleflex, a Pennsylvania-based healthcare supplies and services provider, has agreed to acquire hemostatic devices manufacturer Z-Medica, in a deal worth up to $525 million.
Based in Connecticut, Z-Medica is a portfolio company of Linden Capital Partners. The company is engaged in developing and commercializing hemorrhage control products.
Its three main hemostatic device brands are QuikClot, Combat Gauze, and QuikClot Control+, which use a proprietary technology made up of gauze impregnated with kaolin.
The technology is said to trigger the body’s natural clotting ability and quicken the process to control bleeding.
The hemorrhage control products of Z-Medica are focused currently on trauma surgery, emergency department, EMS, military, and interventional segments with scope to expand into additional indications in the future.
QuikClot Control+ is the first hemostatic dressing, which has been approved for temporary control of Class III or Class IV bleeding in the internal organ space.
Liam Kelly – Chairman, President and CEO of Teleflex said: “Teleflex’s strategy is to invest in innovative products and technologies that can meaningfully enhance clinical efficacy, patient safety and comfort, reduce complications and lower the overall cost of care.
“The acquisition of Z-Medica, an industry leading provider of hemostatic devices, enables Teleflex to leverage strength in the hospital, EMS, and military call points, with differentiated products that complement the EZ-IO and EZPLAZ 1 product portfolio.”
Under the terms of the deal, Z-Medica will be paid $500 million upfront at closing, and a milestone-related payment of up to $25 million.
Eric Compton – President and CEO of Z-Medica said: “We are excited to join the Teleflex organization, which shares our vision for making our products the standard of care for the treatment of hemorrhage control.
“Today’s announcement is a recognition of our focus on patient outcomes and the hard work and dedication of the entire Z-Medica team. I want to especially thank Linden Capital Partners and DW Healthcare Partners, who supported Z-Medica to expand from its roots in the military to become a true global healthcare and hospital focused business.”
Upon meeting customary closing conditions such as receipt of certain regulatory approvals, and others, the transaction is expected to be closed in Q4 2020.