C.R. Bard Inc. has agreed to acquire Rochester Medical Inc., a developer and supplier of silicone urinary incontinence and urine drainage products, for about $262 million, or $20 a share.
The medical technologies developer, which is based in the Murray Hill section of New Providence, said the deal — expected to close this year — will enhance its position in the global urology homecare market, estimated at $930 million. C.R. Bard said Rochester Medical's products and technology provide a strong platform for a combined portfolio to compete in that market.
"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 C.R. Bard CEO Timothy Ring in a statement. "We believe that strengthening our position in the home care market, and specifically the larger and fast-growing intermittent self-catheter segment, is strategically important at this time."
The transaction is structured as a merger, requiring shareholder and regulatory approval. The deal has been approved by boards of directors for both companies. Rochester Medical is based Stewartville, Minn.
It’s the second major transaction in a matter of weeks for C.R. Bard, which also acquired Medafor Inc. in August in a deal that could be worth up to $280 million.
C.R. Bard said by 2018 about 1.8 billion people globally will be affected by some from of lower urinary tract or bladder outlet obstruction. Urinary retention and incontinence are common chronic conditions with these patients that require product solutions outside the hospital.
In the case of urinary retention, C.R. Bard said a patient may need to self-catheterize up to 2,000 times a year. Rochester Medical manufactures the Magic 3 intermittent self-catheter. The product line involves multi-layer construction designed with a soft outer layer and hydrophilic coating to reduce irritation, while having a firm inner layer for ease of insertion.
Male urinary incontinence is also a chronic condition typically managed with incontinence pads or male external catheters. C.R. Bard said Rochester Medical markets an extensive line of products for these patients.