Cook Medical Reproductive Health Business to be Acquired by CooperCompanies

Rhea-AI Summary

Cook Medical has signed a letter of intent to sell its Reproductive Health business to CooperCompanies for $875 million. The deal includes $675 million at closing and $200 million in four annual installments of $50 million each. This strategic move aims to enhance product offerings in women’s health and fertility solutions. Cook will continue manufacturing products for CooperSurgical for two years during the transition. The transaction is pending regulatory approvals and local consultations.

Positive

• Strategic sale to enhance focus on core businesses.
• CooperCompanies positioned to significantly invest in Reproductive Health portfolio.
• Continued manufacturing jobs during the transition period.

Negative

• None.

BLOOMINGTON, Ind.--(BUSINESS WIRE)-- Cook Medical today announced it signed a letter of intent with CooperCompanies to sell the entirety of Cook’s Reproductive Health business within the MedSurg division. CooperCompanies (NYSE:COO), a publicly held healthcare company, is focused on women’s health and fertility solutions, providing innovative products and services for every step in the ART journey. Under the proposed transaction, CooperCompanies will pay $875 million comprised of $675 million at closing and $200 million paid in four $50 million annual installments. The proposed transaction is subject to compliance with applicable local consultation obligations and regulatory approvals.

Cook Medical's Reproductive Health product line. (Photo: Business Wire)

For more than 40 years, Cook has had a focus on Reproductive Health, successfully developing products for obstetrics and gynecology, In Vitro Fertilization (IVF) and Assisted Reproductive Technology (ART). Cook’s history with Reproductive Health is full of innovations that help patients fulfill their dreams of having a family, including developing the first needle specifically for IVF treatments.

“Our history with reproductive health has been full of innovations to help patients fulfill their dreams of having a family,” said D.J. Sirota, senior vice president of Cook Medical’s MedSurg specialty. “This agreement represents more than a simple transaction; it is a commitment to offer a more complete range of solutions to customers and patients around the world. CooperSurgical is uniquely positioned to combine Cook’s reproductive health portfolio with their resources and plans to significantly invest in this product portfolio.”

William Cook Australia, Cook Spencer, and Cook Vandergrift all currently manufacture reproductive health devices. After the closing of the transaction, Cook will continue to manufacture products for CooperSurgical during a two-year transition period and will increase manufacturing capacity to keep up with growth. No manufacturing jobs are at risk because of this partnership. Employees in manufacturing who support these products will continue to do so during the transition period and eventually will cross train to manufacture other Cook Medical products.

“Like we always have been, we remain committed to the communities where we have facilities and employees, including Spencer, Vandergrift, and Brisbane where these products are manufactured,” said Pete Yonkman, president of Cook Medical and Cook Group. “This agreement will allow us to invest in future growth and new technologies. The rest of the Cook organization will continue as privately held, family-owned companies with no plans to change that status.”

About Cook Medical

Since 1963, Cook Medical has been inventing, manufacturing, and delivering a unique portfolio of medical devices to healthcare systems around the world. We work closely with physicians to develop technologies that improve patients’ lives. Because we remain family owned, we have the freedom to focus on what we care about: our patients, our employees, and our communities. Find out more at CookMedical.com , and for the latest news, follow us on Twitter, Facebook and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220207005939/en/

Media Contact:

Marsha Lovejoy

Global Manager, Public Relations, Cook Medical

Marsha.Lovejoy@CookMedical.com

812-320-6903 (mobile)



Media kit available upon request.

Source: Cook Medical

FAQ

What is the value of the Cook Medical and CooperCompanies transaction?

The transaction is valued at $875 million, with $675 million paid at closing and $200 million in four annual installments.

When will the sale of Cook Medical's Reproductive Health business be finalized?

The sale is subject to regulatory approvals and local consultation obligations before finalization.

How will Cook Medical continue to support CooperCompanies after the sale?

Cook Medical will manufacture products for CooperSurgical for a two-year transition period post-sale.

What impact will the sale have on Cook Medical employees?

No manufacturing jobs are at risk due to this partnership; employees will continue to support the products during the transition.

What is the strategic importance of this acquisition for CooperCompanies?

This acquisition allows CooperCompanies to enhance their women’s health and fertility solutions portfolio significantly.