Medical device firm to buy rival

AngioDynamics, the second-largest public company based in the Capital Region, will nearly double its

AngioDynamics, the second-largest public company based in the Capital Region, will nearly double its workforce this May with the $372 million acquisition of a similar company that manufactures in Glens Falls.

Under terms of the unanimously approved deal, the Latham-based medical device company will acquire Navilyst Medical from private equity firm Avista Capital Partners.

Both companies manufacture and provide health care professionals with medical devices for vascular access procedures, which are performed on chemotherapy and hemodialysis patients, among others. The merger will double its share in the vascular access market, company officials said Tuesday.

“The combination of Navilyst and AngioDynamics brings together two leading companies, with complementary strengths and assets,” Avista Capital Partners President David Burgstahler said in a news release. “The combination of our two companies will be a great strategic fit and will provide greater scale, as well as a more comprehensive and competitive product portfolio.”

AngioDynamics employs 87 people at its Latham headquarters and 300 at its Queensbury manufacturing and operations facility. Navilyst employs about 350 people at its Glen Falls manufacturing facility, four miles from AngioDynamics’ site.

“We plan to keep all the facilities open,” said AngioDynamics spokesman Stephen Pedroff. “Both headquarters, both facilities will remain open.”

AngioDynamics will fund the purchase with about $97 million in cash and a $150 million loan from J.P. Morgan, Bank of America and Keybank National Association. The remaining sum will be covered by the stock Avista receives from the deal.

AngioDynamics will issue about 9.5 million shares of common stock to Avista, which will hold approximately 27 percent of the outstanding common stock and receive two new seats on AngioDynamic’s existing board of directors.

Avista Capital Partners acquired Navilyst in 2008 from Boston Scientific, and it generated $149 million in sales in 2011. The transaction is expected to yield net sales of approximately $360 million in fiscal year 2013 for AngioDynamics.

Company officials projected the net cost savings from the deal would start at $5 million and grow to as much as $15 million over two to three years.

“The combined company will offer a more compelling portfolio of products to our customers, allowing the sales force to be more productive and compete more effectively,” said AngioDynamics President and CEO Joseph DeVivo. “At the same time, the acquisition creates an excellent platform for future revenue and earnings growth, as well as substantial cash flow generation leading to significantly increased value for our shareholders.”

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