Theragenics Completes Acquisition of NeedleTech Products

Theragenics Corporation, a medical device company serving the surgical products and prostate cancer treatment markets, announced that it completed the acquisition of NeedleTech Products, Inc., on July 28. The agreement to acquire NeedleTech for $47.8 million was previously announced by Theragenics on July 16.

With revenue of $16.9 million in 2007, NeedleTech, located in Attleboro, MA, is a manufacturer of specialty needles and related medical devices. Its current products include coaxial needles, biopsy needles, access trocars, brachytherapy needles, guidewire introducer needles, spinal needles, disposable veress needles, and other needle-based products. End markets served include the cardiology, orthopedic, pain management, endoscopy, spine, urology, and veterinary markets.

Theragenics paid $47.8 million in cash, plus its transaction costs, for NeedleTech, subject to the terms and conditions of the agreement. Theragenics retained the cash and investments held by NeedleTech, which totaled approximately $5.0 million as of June 30, 2008. The purchase price is also subject to a working capital adjustment. Theragenics financed $24.5 million of the purchase price with borrowings on its existing $40.0 million credit facility and paid the remainder from current cash and investment balances.

Theragenics, headquartered in Buford, GA, expects the acquisition to be dilutive to earnings per share in 2008 and accretive in 2009. The results of operations of NeedleTech will be included in Theragenics’ consolidated results beginning July 28, 2008.

SOURCE: Businesswire