Bayer HealthCare to give $1.1 billion for Conceptus
Conceptus is selling the method which is sold in the United States and other countries. With this acquisition, Bayer will be able to offer a complete range of short-term, long-term and permanent contraceptive choices for women. Within the next ten business days, Bayer will launch a public tender offer to acquire all shares in Conceptus.
The transaction values Conceptus at approximately $1.1 billion (approximately EUR 852 million) representing $31.00 per share in cash. Closing is subject to customary conditions, in particular anti-trust approval in the U.S., and is expected by mid-year 2013.
"Bayer is committed to augmenting its organic growth with strategic bolt-on acquisitions. The acquisition of Conceptus represents an excellent fit for our HealthCare business – specifically in the United States, the world’s most important health care market," said Marijn Dekkers, CEO of Bayer AG.
"Essure has been well accepted in the market for more than ten years and demonstrated robust growth over this time. We believe that under Bayer’s ownership, the Essure product will more rapidly become the standard of care in our established markets, and will benefit in new markets from Bayer’s global presence. Our customers and patients will benefit from this increased access to the benefits of Essure," said D. Keith Grossman, president and CEO of Conceptus.
Conceptus’ flagship product is the Essure procedure, approved by the U.S. Food and Drug Administration. Essure is the only surgery-free and hormone-free permanent birth control method that can be performed in the comfort of a physician's office in less than 10 minutes without the risks associated with general anesthesia or tubal ligation.
Conceptus generated net sales of $141 million (approximately EUR 110 million) for its fiscal year 2012. Adjusted EBITDA for 2012 was $28.2 million (approximately EUR 22.0 million). Headquartered in Mountain View, California, the company employs 300 people. ■