C.R. Bard to Buy Rochester Medical for $262 Million

C.R. Bard Inc. has inked a $262 million deal to buy Rochester Medical Inc., a developer of silicone urinary incontinence and urine drainage products. The acquisition price was decided by price per share—$20—and will be paid upon closure of the deal, expected to occur later this year. According to officials at C.R. Bard, the transaction is structured as a merger, and has been approved by each company’s board of directors. The deal is subject to approval by Rochester Medical’s shareholders.

“Rochester’s double-digit growth product portfolio, including their customer access programs, is a key building block in our strategy to access faster growing markets over the long-term,” said Timothy M. Ring, Bard’s chairman and CEO, commented. “We believe that strengthening our position in the home care market, and specifically the large and fast-growing intermittent self-catheter segment, is strategically important at this time.”

According to the British Journal of Urology, an estimated 1.1 billion individuals worldwide will be affected by some form of lower urinary tract or bladder outlet obstruction by 2018. Urinary retention and incontinence are common chronic conditions with these patients that require product solutions outside the hospital. In the case of urinary retention, a patient may need to self-catheterize up to 2,000 times per year.

Rochester Medical manufactures the differentiated Magic 3 intermittent self catheters (ISC), which are, according to the company, steadily gaining share in the $800 million global ISC market. This product line incorporates a multi-layer construction designed with a soft outer layer and hydrophilic coating to reduce irritation of the urethral tissue, while having a firm inner layer for ease of insertion.

Rochester Medical also has an extensive line of male external catheters, a device for the management of chronic male urinary incontinence, which can result from radical prostatectomy, benign prostatic hyperplasia, or aging.

“Our agreement with Bard represents an attractive valuation for Rochester Medical shareholders, and as an all cash offer, provides liquidity for shareholders,” said Anthony J. Conway, Rochester Medical’s president and CEO. “We believe the merger represents a great opportunity for the combined companies to create a broad product portfolio by offering a more comprehensive range of high-quality urological and continence care products to our customers.”

C.R. Bard is based in Murray Hill, N.J., makes products for the vascular, urology, oncology, and surgical specialty segments. Rochester Medical, based in Stewartville, Minn., will fold into the urology unit.