Nasdaq-listed Merit Medical Systems has announced the acquisition of Biolife Delaware for around $120m, a move that aligns with its strategy to enhance its offerings in the medical device sector.
With this acquisition, Biolife becomes a wholly-owned subsidiary of Merit Medical. The consideration for the deal is a combination of cash payments and assumption of Biolife’s existing liabilities.
Biolife, headquartered in Sarasota, Florida, specialises in manufacturing haemostatic devices under the StatSeal and WoundSeal brands. These products utilise potassium ferrate and a hydrophilic polymer to achieve wound sealing, independent of the traditional clotting process.
Merit Medical aims to integrate these products into its portfolio to provide more comprehensive solutions for post-procedural care.
The inclusion of StatSeal is expected to offer a significant advantage in procedures such as interventional radiology, cardiology, dialysis, electrophysiology, biopsy, and drainage by forming a rapid protective seal at procedure sites.
Merit Medical chairman and CEO Fred Lampropoulos said: “The acquisition provides effective, differentiated, haemostatic solutions for all percutaneous devices with a broad range of clinical applications including vascular closure and indwelling catheter bleeding complications.
“BioLife’s StatSeal and WoundSeal products address an estimated $350m global market opportunity, are clinically validated, and will enhance our ability to deliver comprehensive solutions to our customers.
“Moreover, with Merit’s resources and expertise, we believe we are well positioned to further develop and expand the reach of these product lines, ultimately benefiting patients and healthcare providers globally.”
Biolife’s assets reportedly generated around $15m in revenue in 2024.
Post-acquisition, these assets are projected to contribute between $10m and $11m in revenue by the end of that year.
Despite an initial dilution on Merit Medical’s GAAP net income and earnings per share due to reduced interest income and transaction-related expenses, the acquisition is set to positively impact non-GAAP gross margin and operating margin by 2026.
The long-term financial outlook anticipates that the acquisition will lead to improvements in non-GAAP net income and earnings per share starting from 2026. The overall strategic intention is for the acquisition to be accretive beyond the initial post-acquisition year.
