Ethicon Endo-Surgery to Acquire SterilMed

There’s a bit of truth to the old adage, “Timing is everything.” Just ask Karen Licitra, one of the top executives at Ethicon Endo-Surgery Inc., a Johnson & Johnson subsidiary that recently purchased SterilMed Inc. “The time is right for Ethicon Endo-Surgery and SterilMed to come together, given the rapid changes occurring in the U.S. healthcare market,” Licitra, company group chairman and worldwide franchise chairman for Ethicon, said in announcing the deal.

Indeed, the timing couldn’t be better for Ethicon Endo-Surgery and SterilMed to team up: Besides broadening Ethicon’s portfolio and enabling the Cincinnati, Ohio-based firm to establish a strong presence in a rapidly-growing market segment, the move adds scale, scope and experience to SterilMed management.

“Becoming part of the Ethicon Endo-Surgery franchise…will have a positive impact on our business, while also expanding our product portfolio,” SterilMed Chairman and CEO Brian Sullivan said in prepared remarks.

“Together we can continue our focus on developing surgical solutions,” Licitra added, “while providing healthcare facilities a wider range of flexible product options to save money, reduce medical waste, and maintain quality care for patients.”

Though it will be managed as part of the Ethicon Endo-Surgery franchise, executives said SterilMed will continue to operate as a standalone company and retain its name. The deal is conditioned on the expiration or termination of all waiting periods under the nation’s anti-trust law. Financial terms of the merger were not disclosed.

SterilMed provides various products and services to companies, including device reprocessing, medical equipment repair, and pre-owned equipment sales that help healthcare providers lower equipment costs and reduce environmental waste. The Maple Grove, Minn.-based company reprocesses thousands of types of devices, including various probes, patient monitors, forceps, diagnostic catheters, laparoscopic instruments and cannula sets. Its customers include the Cleveland Clinic, Duke University in Durham, N.C., and Tenet Healthcare, a large, investor-owned healthcare delivery system. Four years ago, SterilMed merged with The Scope Exchange, an endoscope sales and service company based in Greensboro, N.C.

Ethicon Endo-Surgery makes surgical products such as forceps, suturing devices and gastric bands.