SurModics Acquires Creagh Medical

SurModics Inc. has acquired Creagh Medical Ltd., a developer and manufacturer of percutaneous transluminal angioplasty (PTA) balloon catheters, for $32 million. SurModics executive consider the acquisition a major step forward in the company’s strategy to transform its Medical Device business from being a provider of coating technologies to offering whole-product solutions to medical device customers in the large and growing global interventional vascular market.

“We are excited about the acquisition of Creagh Medical and the strategic fit of its balloon catheter design and development, and manufacturing capabilities, which are critical to our transformation into a whole-product solutions provider,” said Gary Maharaj, president/CEO of SurModics. “We are disciplined in our approach for acquisitions, recognizing that these investments must align with our strategic vision and accelerate our transformation. Creagh Medical’s capabilities are a strategic complement to our core technology expertise.”

Creagh Medical is based in Ballinasloe, Ireland, located between the Galway and Athlone medical device hubs. The company was established in 2006 with significant investment by USCI Japan to establish a state-of-the-art facility equipped for medical device research, development and manufacturing from resin to finished catheters. Following a successful management buyout in 2009, and with support from Enterprise Ireland, Creagh Medical refocused the business on developing market leading PTA product platforms, many of which have been cleared for commercial sale by regulatory authorities in Europe, the United States and Japan. Given SurModics’ leadership in coating technologies and current drug-coated balloon program, the combined organization will have the capability to support customers from concept to commercialization, including turn-key manufacturing of innovative whole-product solutions. Tom Greaney, current CEO of Creagh Medical, is joining the SurModics executive leadership team, reporting to Maharaj, and will continue to lead the company’s Ireland-based operations.

“We are delighted to be able to combine our world-class balloon catheter development and manufacturing expertise with SurModics, which leads the world in surface modification technologies,” said Greaney. “Our capabilities are a great strategic fit for the company, strengthening its position as a valued partner to industry-leading medical device manufacturers.”

SurModics acquired Creagh Medical for 30 million euros (approx. US$32 million), including an upfront payment of 18 million euros, and up to 12 million euros based on achievement of revenue and value-creating operational milestones. Other terms of the agreement were not disclosed. The Creagh Medical business is expected to generate $3.5 million to $4 million of revenue for SurModics in fiscal year 2016. The acquisition will be dilutive on a GAAP and adjusted earnings per share basis in SurModics’ fiscal year 2016 and accretive on an adjusted earnings per share basis in fiscal year 2017.

Creagh Medical Ltd. designs and manufactures high-quality PTA balloon catheters for medical device customers.

SurModics partners with medical device, diagnostic and life sciences companies to develop and commercialize innovative disease detection and treatment products. The company’s core offerings include surface modification coating technologies that impart lubricity, prohealing and biocompatibility characteristics and components for  in-vitro  diagnostic test kits and microarrays. The company is headquartered in Eden Prairie, Minn.