Haemonetics Announces Definitive Agreement to Acquire Attune Medical

Rhea-AI Summary

Haemonetics Corporation (NYSE: HAE) announces acquisition of Attune Medical, a manufacturer of ensoETM esophageal cooling device, for $160 million upfront with additional contingent consideration. The deal aims to enhance Haemonetics' presence in the electrophysiology market and improve patient outcomes.

Insights

Financial Analyst

The acquisition of Attune Medical by Haemonetics represents a strategic move to strengthen its position in the electrophysiology (EP) market. The financial aspect of this transaction is noteworthy, with a significant upfront cash payment of $160 million, which indicates a robust valuation of Attune Medical's proprietary technology. The additional contingent consideration based on sales growth and achievement of milestones aligns the interests of both parties towards the future performance of the ensoETM product. This structure incentivizes Attune to continue its growth trajectory post-acquisition.

From an investor's perspective, the immediate accretion to revenue and earnings growth is a positive signal. Attune's impressive revenue doubling in the last fiscal year showcases a strong market demand and potential for further expansion. Haemonetics' plan to finance the acquisition through cash-on-hand and credit facilities suggests a balanced approach to capital management, maintaining liquidity while leveraging for growth.

However, investors should consider the integration risks and the ability of Haemonetics to effectively incorporate Attune's operations and realize the projected synergies. The long-term success of this acquisition will depend on the seamless integration of the ensoETM device into Haemonetics' existing portfolio and the continued adoption of the technology by hospitals and physicians.

Medical Technology Analyst

The ensoETM device by Attune Medical represents a significant advancement in the field of medical devices for cardiac procedures. Its FDA clearance for esophageal protection during RF cardiac ablation procedures positions it as a unique solution in a market concerned with patient safety and procedural efficiency. The device's ability to reduce esophageal injury, procedure times and patient readmissions, while increasing same-day discharges and long-term success rates, addresses key challenges faced by healthcare providers.

Haemonetics' acquisition of Attune Medical is poised to enhance its Interventional Technologies business, providing a complementary product to its Vascular Closure portfolio. The strategic fit of ensoETM within Haemonetics' existing product range could facilitate cross-selling opportunities and drive market penetration, particularly given Haemonetics' robust international channels.

The medical technology industry often sees consolidation as a means to achieve growth and innovation. The success of this acquisition will largely depend on the continued clinical adoption of ensoETM and its integration into standard care protocols. The medical community's response to the device's clinical benefits and cost-effectiveness will be critical in determining its market potential post-acquisition.

Market Research Analyst

With atrial fibrillation affecting millions in the U.S. alone, the market for treatments, including RF cardiac ablation procedures, is substantial. The acquisition of Attune Medical and its ensoETM device by Haemonetics taps into this growing market, potentially expanding Haemonetics' customer base and enhancing its product offerings in the EP space.

The market impact of this acquisition will be influenced by factors such as the rate of adoption of the ensoETM device by healthcare providers, competitive responses from other medical device companies and the overall growth of the EP market. Tracking the sales growth post-acquisition will be essential to assess the return on investment and the effectiveness of Haemonetics' growth strategies.

Furthermore, the transaction is indicative of a broader trend in the medical device industry towards consolidation and the acquisition of innovative technologies to bolster product lines and drive growth. Stakeholders should monitor Haemonetics' ability to capitalize on Attune Medical's existing sales momentum and leverage its international presence to scale the adoption of ensoETM globally.

BOSTON, March 5, 2024 /PRNewswire/ -- Haemonetics Corporation (NYSE: HAE), a global medical technology company focused on delivering innovative medical products and solutions to drive better patient outcomes, today announced that it has entered into a definitive agreement to acquire privately-held Chicago-based Attune Medical, the manufacturer of the ensoETM^® proactive esophageal cooling device, the only FDA-cleared temperature regulation device indicated for esophageal protection during radiofrequency (RF) cardiac ablation procedures.

Under the terms of the agreement, Haemonetics will acquire Attune Medical for an upfront cash payment of $160 million at closing plus additional contingent consideration based on sales growth in the three years following the consummation of the transaction and the achievement of certain other milestones. The acquisition is subject to customary closing conditions and is expected to be completed in the first quarter of Haemonetics' fiscal year 2025.

In the treatment of atrial fibrillation, a condition that affects 3 to 6 million people in the U.S., ensoETM significantly reduces the likelihood of esophageal injury during RF cardiac ablations. Additionally, studies have reported reduced procedure times and patient readmissions, and increased rates of same-day discharge and long-term procedure success with the use of ensoETM.

Stewart Strong, Haemonetics' President, Global Hospital, said, "Attune Medical's ensoETM will bolster Haemonetics' presence in the electrophysiology market and complement our leadership in Vascular Closure. EnsoETM effectively reduces esophageal injuries without requiring hospitals to purchase complex and costly new ablation systems. With this groundbreaking solution we look forward to empowering more physicians to improve patient outcomes, and expanding our EP portfolio with yet another industry-leading technology to accelerate the growth and impact of our Interventional Technologies business."

Jay Istvan, Chief Executive Officer at Attune Medical, added, "We are thrilled to become part of Haemonetics. Their Hospital business has strong positions in both EP and critical care, and their international channels are robust and expanding. We believe Haemonetics is the best company to bring ensoETM's substantial benefits to more caregivers worldwide to enable new standards of care."

Attune Medical generated approximately $22 million in revenue during its most recently completed fiscal year ended December 31, 2023, more than doubling its revenue from the prior fiscal year. Haemonetics expects this transaction to be immediately accretive to revenue and earnings growth following the completion of the transaction.

Haemonetics plans to finance this acquisition through a combination of cash-on-hand and a draw under its revolving credit facility.

DLA Piper served as legal advisor for Haemonetics. William Blair served as financial advisor and Perkins Coie served as legal advisor for Attune Medical.

About Haemonetics

Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing a suite of innovative medical products and solutions for customers, to help them improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services. Haemonetics' Global Hospital business provides a range of solutions to address the needs of hospitals, including Interventional Technologies for electrophysiology and interventional cardiology, and Blood Management Technologies that include diagnostics to help inform treatment decisions, technologies to help avoid unnecessary allogeneic transfusions and solutions to help optimize management of blood products. To learn more about Haemonetics, visit www.haemonetics.com.

About Attune Medical

Advanced Cooling Therapy, Inc., doing business as Attune Medical, pioneered the practice of using the esophageal space to proactively manage patient temperature and to reduce the likelihood of esophageal injury during cardiac ablation procedures. Attune Medical's novel ensoETM technology is designed for use across a range of medical conditions involving patient cooling or warming, including during treatment in critical care, neurocritical care, trauma, burn surgery, spine surgery, and cancer surgery, among others. 

Designed for ease-of-use, the single-tube ensoETM is placed in the esophagus and connected to an external heat exchange unit to create a closed-loop system for proactive controlled temperature management. Attune Medical has shipped more than 68,000 ensoETM devices for hospital use, and it has been utilized in more than 50,000 electrophysiology procedures since first becoming available in 2015. 

To learn more about Attune Medical, visit www.attune-medical.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements do not relate strictly to historical or current facts and may be identified by the use of words such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "forecasts," "foresees," "potential" and other words of similar meaning in conjunction with statements regarding, among other things, (i) plans and objectives of management for the operation of Haemonetics, (ii) the timing of completion of the acquisition and the consummation of the acquisition, (iii) the anticipated financing of the transaction, (iv) the anticipated benefits to Haemonetics arising from the completion of the acquisition, (v) the impact of the acquisition on Haemonetics' business strategy and future business and operational performance, and (vi) the assumptions underlying or relating to any such statement. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon Haemonetics' current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties.

Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the failure to realize the anticipated benefits of the acquisition or the acquisition, its announcement or pendency having an unanticipated impact, Haemonetics' ability to predict accurately the demand for products and products under development by it or Attune Medical and to develop strategies to successfully address relevant markets, actual and anticipated achievement of the milestones and future sales growth on which contingent consideration is based, the impact of competitive products and pricing, technical innovations that could render products marketed or under development by Haemonetics or Attune Medical obsolete, risks related to the use and protection of intellectual property, the risk that the transaction may not be completed in a timely manner or at all, and the risk that using debt to finance, in part, the acquisition will increase Haemonetics' indebtedness. These and other factors are identified and described in more detail in Haemonetics' filings with the U.S. Securities and Exchange Commission. Haemonetics does not undertake to update these forward-looking statements.

Investor Contacts:
Olga Guyette, Sr. Director-Investor Relations & Treasury	David Trenk, Manager-Investor Relations
(781) 356-9763	(203) 733-4987
olga.guyette@haemonetics.com	david.trenk@haemonetics.com
Media Contact:
Josh Gitelson, Director-Global Communications
(781) 356-9776
josh.gitelson@haemonetics.com

 

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SOURCE Haemonetics Corporation

FAQ

What did Haemonetics announce regarding Attune Medical?

Haemonetics announced the acquisition of Attune Medical, the manufacturer of ensoETM esophageal cooling device.

How much is the upfront cash payment for the acquisition?

The upfront cash payment for the acquisition is $160 million.

What is the purpose of acquiring Attune Medical for Haemonetics?

The acquisition aims to bolster Haemonetics' presence in the electrophysiology market and complement its leadership in Vascular Closure.

What is the revenue generated by Attune Medical in its most recent fiscal year?

Attune Medical generated approximately $22 million in revenue during its most recently completed fiscal year ended December 31, 2023.

How does Haemonetics plan to finance this acquisition?

Haemonetics plans to finance this acquisition through a combination of cash-on-hand and a draw under its revolving credit facility.