Vascular Solutions Completes Acquisition of Manufacturing Facility

Minneapolis, Minn.-based Vascular Solutions Inc. has completed the acquisition of its manufacturing facility in Maple Grove, Minn. that it has been leasing since 2003. The 79,300-square-foot building was bought with existing cash and no debt.

In February, Vascular Solutions announced that it had entered into a purchase agreement for the facility, which the company has occupied under a lease agreement for more than a decade. The building currently houses Vascular Solutions’ principal manufacturing, quality, regulatory, and research and development (R&D) operations.

During 2015, the company intends to invest approximately $4.5 million in capital improvements to renovate the manufacturing facility to meet the company’s continued manufacturing requirements. All of the expenditures are expected to be funded from the company’s cash on hand and will not be supported by any debt or government grant.

The acquisition and renovations are part of Vascular Solutions’ continued growth strategy, which includes more than ten consecutive years of double-digit sales growth from new product development. The company anticipates hiring an additional 60 skilled employees for its Minnesota operations over the next two years, and the new hires will expand the company’s workforce in Minnesota to over 500.

Vascular Solutions expects the acquisition of the 6464 manufacturing facility to reduce its annual cost of occupancy by approximately $350,000 on an annual after-tax basis beginning immediately, resulting in approximately $0.02 per share of earnings accretion.

“Vascular Solutions has launched more than 80 products since 2003, and in recent years we have averaged 10 new medical devices developed and launched each year to serve the needs of interventional physicians and their patients,” said CEO Howard Root. “The purchase of our manufacturing facility, the expansion of our R&D resources, and the creation of more well-paying jobs are part of our strategy to sustain our pace of new product flow and the momentum in our business. We are especially proud that we have been able to fund all of our expansion initiatives with our own cash balance without the need to borrow money or rely on any outside sources of funding. Our strong cash flows and working capital position give us the flexibility we need to continue to invest toward our future growth.”

In addition to its Minnesota facilities, Vascular Solutions maintains an R&D and production facility for its hemostatic valve product line in Galway, Ireland.

Vascular Solutions makes devices for coronary and peripheral vascular procedures.