Baxter International Acquires Baxa Corp.

Baxter International Inc. has entered into a definitive agreement to acquire Baxa Corporation, a privately held company based in Englewood, Colo., for $380 million in cash, upfront. Baxa develops pharmacy technology for the efficiency and safety of oral and IV dose preparation and delivery. This addition is expected to complement Baxter’s portfolio of nutrition products and drug delivery systems.

“With these new offerings, Baxter will be able to provide a comprehensive solution to fulfill the majority of patients’ nutritional requirements and increase efficiency in the pharmacy,” said Robert M. Davis, president of Baxter’s Medical Products business. “Bringing this expertise together with Baxter’s commercial capabilities and global reach will enable us to continue to meet our customers’ evolving needs and extend our position in IV nutrition and fluid delivery.”

Annual sales for Baxa were approximately $150 million in 2010, and Baxter expects the future top-line growth of this business to increase. Baxter also expects the transaction to be neutral to full-year 2012 earnings, excluding dilution of approximately $0.03 to $0.05 per diluted share related to acquisition accounting and transaction-related expenses. The deal is expected to close following satisfaction of customary closing conditions and the expiration or early termination of the waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act.

Both companies have sought to advance the delivery of IV nutrition through technology; Baxter’s multi-chamber, premixed containers provide many of the essential ingredients of balanced nutrition for a wide range of patients, and Baxa’s pharmacy integration and automation technology allow hospital pharmacists to customize treatment for specific patient populations.

In response to the growing need to eliminate sources of potential error, both premixed medications and pharmacy automation help to reduce medication errors and improve operational effectiveness. Among Baxa’s numerous offerings are the ExactaMix Compounder, devices that automate multi-ingredient nutritional solution compounding and the DoseEdge Pharmacy Workflow Manager, an integrated system for managing IV and oral dose preparation activities.

“With this agreement, Baxa will be able to play a greater role in delivering safe medication practices,” said Greg Baldwin, Baxa chairman and CEO. “We are very pleased to find a partner that shares our commitment and sees the potential in our products, technology and people.”
Baxter International is headquartered in Deerfield, Ill.