Acquisition expands product portfolio and opportunities for delivering innovative and cost-effective solutions to healthcare customers
Cincinnati, OH (September 28, 2011) – Ethicon Endo-Surgery, Inc. (EES), a global leader in the development of innovative medical devices for minimally invasive and open surgical procedures, today announced a definitive agreement to acquire privately-held SterilMed, Inc. (SterilMed), a leader in the reprocessing and remanufacturing of medical devices in the United States. Financial terms of the agreement are not being disclosed.
SterilMed, based in Maple Grove, MN, offers products and services including medical device reprocessing, equipment repair, and pre-owned equipment sales that help healthcare providers lower their medical device and equipment costs, while reducing the amount of environmental waste they generate. The acquisition broadens EES’ portfolio and enables expansion in a rapidly growing market segment, while also bringing added scale, scope and experience to an already successful SterilMed team.
“The time is right for Ethicon Endo-Surgery and SterilMed to come together, given the rapid changes occurring in the U.S. healthcare system,” said Karen Licitra, Company Group Chairman and Worldwide Franchise Chairman for Ethicon Endo-Surgery. “Together, we can continue our focus on developing innovative surgical solutions, while providing healthcare facilities a wider range of flexible product options to save money, reduce medical waste, and maintain quality care for patients.”
SterilMed will be managed as part of the Ethicon Endo-Surgery franchise, but will continue to operate as a stand-alone company and retain the name SterilMed.
“This is an exciting opportunity for both our customers and our company,” said Brian Sullivan, SterilMed Chairman and CEO. “Becoming part of the Ethicon Endo-Surgery franchise, one of the largest and most respected medical device companies in the world, will have a positive impact on our business, while also expanding our product portfolio.”
The closing of the acquisition is conditioned on the expiration or termination of all applicable waiting periods pursuant to the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
About Ethicon Endo-Surgery
Ethicon Endo-Surgery, Inc., a Johnson & Johnson Company, develops and markets advanced innovative medical devices for minimally invasive and open surgical procedures, focusing on procedure-enabling devices for the interventional diagnosis and treatment of conditions in general and bariatric surgery, as well as gastrointestinal health, gynecology and surgical oncology. More information can be found at www.ethiconendosurgery.com.
Johnson & Johnson Investor Relations
(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Ethicon Endo-Surgery, Inc. and/or Johnson & Johnson. Risks and uncertainties include, but are not limited to, the satisfaction of closing conditions for the acquisition, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act and certain customary closing conditions; the possibility that the transaction will not be completed; general industry conditions and competition; economic factors, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; trends toward healthcare cost containment; and increased scrutiny of the healthcare industry by government agencies. In addition, if and when the transaction is consummated, there will be risks and uncertainties related to the ability of Ethicon Endo-Surgery, Inc. and Johnson & Johnson to successfully integrate the business, products and employees of SterilMed, Inc., as well as the ability to ensure continued performance or market growth of SterilMed, Inc.’s business and products. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 2, 2011. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Neither Ethicon Endo-Surgery, Inc. nor Johnson & Johnson undertakes to update any forward-looking statements as a result of new information or future events or developments.)