Baxter International Inc. announced today that it has entered into a definitive agreement to acquire Baxa Corporation, a privatelyheld company based in Englewood, Colo., with additional operations in Florida and the United Kingdom. Baxa develops pharmacy technology that enhances the efficiency and safety of oral and IV dose preparation and delivery.
The addition of Baxa’s product lines will complementBaxter’s portfolio of nutrition products and drug delivery systems and supportspatient safety.
“With these new offerings, Baxter will be able toprovide a comprehensive solution to fulfill the majority of patients’ nutritionalrequirements and increase efficiency in the pharmacy,” said Robert M.Davis, president of Baxter’s Medical Products business.
“Bringing this expertise together with Baxter’scommercial capabilities and global reach will enable us to continue to meet ourcustomers’ evolving needs and extend our position in IV nutrition and fluiddelivery.” The transaction includes a total upfront cash consideration of$380 million and is expected to close following satisfaction of customary closingconditions and the expiration or early termination of the waiting period underthe Hart-Scott-Rodino Antitrust Improvements Act.
Annual sales for Baxa were approximately $150 million in2010, and Baxter expects the future top-line growth of this business to be accretiveto the company’s future sales growth. In addition, Baxter expects thistransaction to be neutral to full-year 2012 earnings excluding dilution ofapproximately $0.03 to $0.05 per diluted share related to acquisitionaccounting and transaction-related expenses, and increasingly accretivethereafter.
Nutrition is recognized as an important element of patients’therapy, and both Baxter and Baxa have sought to advance the delivery of IV nutritionthrough innovative technologies such as Baxter’s multi-chamber, premixedcontainers and Baxa’s automated compounding systems.
Baxter’s multi-chamber containers are prefilled and providemany of the essential ingredients of balanced nutrition for a wide range of patients.Baxa’s pharmacy integration and automation technology allow hospitalpharmacists to customize treatment for specific patient populations when needed.
In response to the growing need to eliminate sources ofpotential error, both premixed medications and pharmacy automation help to reducemedication errors and improve operational effectiveness. Among Baxa’s numerousofferings are the ExactaMix(R) Compounder, devices that automate multi-ingredientnutritional solution compounding and the DoseEdge(R) Pharmacy Workflow Manager,an integrated system for managing IV and oral dose preparation activities.
Baxa products play a trusted role in the preparation ofhundreds of thousands of safe doses of medication every day. “With thisagreement, Baxa will be able to play a greater role in delivering safemedication practices,” said Greg Baldwin, Baxa chairman and chiefexecutive officer. “We are very pleased to find a partner that shares our commitmentand sees the potential in our products, technology and people.”