Haemonetics, Hemerus Medical, Pall deal

Blood management solutions company Haemonetics announced two deals that it says will accelerate its entry into the whole blood collection market. The company will acquire Hemerus for up to $27 million in cash based on regulatory milestones for Hemerus' SOLX whole blood collection system. Hemerus is also eligible for royalties on SOLX-based products with maximum royalties of $14 million over the next 10 years. An NDA is under review by FDA and Hemerus said it expects a decision this year. The SOLX system includes a storage solution that is believed to extend the effective life of red blood cells.

Haemonetics will also acquire Pall's Transfusion Medicine business comprised of blood collection, filtration and processing product lines for $551 million in cash. Haemonetics will pay $536 million up front with the remaining $15 million payable upon Pall's replication and delivery of certain media for use in leukoreduction filters in 2016. Pall will provide the assets under a supply agreement until the transfer. The deal includes manufacturing facilities in California, Mexico, Italy and a portion of Pall's operations in Puerto Rico and about 1,300 employees. Revenue for the product lines being divested is expected to be about $230 million in fiscal year 2012 ending July 31. Haemonetics will use $61 million of cash on hand plus $475 million borrowed under new five-year term loans to finance the Pall deal. ...