Kimberly-Clark, a global health and hygiene company and I-Flow, a healthcare company that develops and markets low-cost drug delivery systems and products for post-surgical pain relief and surgical site care, have entered into a definitive agreement. According to it I-Flow will be acquired in a cash tender offer for approximately $324 million on a fully diluted basis.
Reportedly, I-Flow will operate as part of Kimberly-Clark Health Care, a global business segment of Kimberly-Clark Corporation and a provider of infection control solutions, surgical solutions, and medical devices for pain management, respiratory and digestive health.
Joanne Bauer, president of Kimberly-Clark Health Care, said: “The acquisition of I-Flow is consistent with our global business plan strategy to expand our Health Care business to include higher-growth, higher-margin medical devices. I-Flow will increase our medical device sales by more than 50 percent, add an innovative and successful technology to our growing portfolio of pain management and surgical solution products, and strengthen the depth and breadth of our sales force. Moreover, I-Flow has a solid track record of generating strong sales growth and healthy gross margins.”
Donald Earhart, chairman and CEO of I-Flow, said: “Combining forces with a global leader such as Kimberly-Clark Health Care will enable future growth, and provide a platform to more broadly deliver pain relief and surgical site care, which is important for patients, physicians and healthcare providers.”
The boards of directors of both companies have unanimously approved the transaction. The transaction is expected to close in the fourth quarter of 2009, subject to customary closing conditions.