Urohealth Systems Agrees to Buy Instrument Maker
A day after announcing another major acquisition, Urohealth Systems Inc. said Tuesday that it has agreed to purchase a New Jersey-based maker of surgical and gynecological instruments in a deal valued at $12 million.
Urohealth, based in Costa Mesa, said it will issue 3 million new shares of common stock to acquire Advanced Surgical Inc. of Princeton, its fifth acquisition in a year. Urohealth had announced Monday that it will acquire Osbon Medical Systems Ltd. of Augusta, Ga., maker of the ErecAid non-surgical impotence treatment system.
Urohealth said it was interested in Advanced Surgical because of the company’s new valved catheter device, Relax, to aid women with urinary incontinence, because its product mix complements Urohealth’s line.
Michael A. Piraino, executive vice president of Urohealth, said he expects that Advanced Surgical offices in Princeton will eventually be closed and “a few” workers will be transferred to Orange County.
The merger value was based on Urohealth’s stock price--$4 per share--at the close of trading Monday on the American stock exchange. The price closed Tuesday at $4.25, up 25 cents a share.
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