CareFusion To Invest $100 Million In Israeli Infusion Pump Maker
CME Designs and Manufactures Compact, State of the Art Infusion Systems
Dec 9, 2013
SAN DIEGO, Dec. 9, 2013 /PRNewswire/ -- CareFusion (NYSE: CFN), a leading global medical technology company, today announced it will invest $100 million for a 40 percent minority stake in Caesarea Medical Electronics (CME), a global infusion pump systems manufacturer.
CME, headquartered in Israel, designs, manufactures and markets a range of infusion and syringe pumps as well as related accessories and disposable administration sets for both homecare and hospital settings. CME infusion pumps are known for their compact and highly portable design, making them ideal for specialty applications such as IV and epidural anesthesia and pain management, infusions during MRI procedures, hospital and home nutrition, among others. The pumps are sold in 60 countries across six continents, with a majority of pumps sold outside the United States. The two companies have a history of collaboration, which includes CareFusion purchasing technology from CME.
"This investment creates a strategic, long-term relationship with CME, which has great people and great technology that is very complementary to our infusion portfolio," said Kieran Gallahue, chairman and CEO of CareFusion. "This is another example of how we can put our balance sheet to work through strategic investments that create opportunities to drive growth for the company in new markets and outside the U.S."
CME also manufactures and sells the BodyGuard™ line of infusion pumps that are unique for their light weight, small size and portability. The BodyGuard can be configured with one to four channels and is ideally suited for intensive care units with its MultiDock™ stations. They also produce and market the T34™ line of compact syringe pumps that can be used in both hospitals and for personal use at home.
Under the terms of the agreement, CareFusion has the right to make additional investments that would increase its interest to a majority owner of CME. CME will continue to operate independently from CareFusion, including the retention of its existing distributor network in the markets it serves. CareFusion expects to complete the investment transaction by March 31, 2014, subject to certain closing conditions. The final investment amount is subject to typical adjustments. Additional terms of the agreement were not disclosed.
About CareFusion Corporation
CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. The company develops industry-leading technologies including Alaris® infusion pumps and IV sets, MaxPlus® and MaxZero™ IV connectors and sets, Pyxis® automated dispensing and patient identification systems, AVEA®, LTV® series and AirLife® ventilation and respiratory products, ChloraPrep® products, MedMined® services for data mining surveillance, V. Mueller® surgical instruments, and an extensive line of products that support interventional medicine. CareFusion employs approximately 15,000 people across its global operations. More information may be found at www.carefusion.com.
Cautions Concerning Forward-looking Statements
This CareFusion news release and the information contained herein contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. The matters discussed in these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. Forward looking statements include, but are not limited to, statements about the timing of the anticipated investment, the potential benefits of the anticipated investment, as well as future plans and intentions. The forward-looking statements contained herein are based on the current expectations and assumptions of CareFusion and not on historical facts. The following important factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the satisfaction of conditions to closing the investment; and the risk that benefits from the investment may not be fully realized or may take longer to realize than expected. Additional factors that may affect future results are described in CareFusion's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 and Annual Report on Form 10-K for the year ended June 30, 2013. Except to the limited extent required by applicable law, CareFusion undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information: Contacts: Media: Troy Kirkpatrick, (858) 617-2361, firstname.lastname@example.org; Investors: Jim Mazzola, (858) 617-1203, email@example.com