LeMaitre Vascular Acquires Biomateriali, a Vascular Graft Manufacturer
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BURLINGTON, Mass., Dec. 21 / -- LeMaitre Vascular, Inc. (NASDAQ:LMAT), a provider of peripheral vascular devices and implants, yesterday acquired Biomateriali S.r.l., a privately held Italian vascular graft manufacturer, for euro 1.8 million in cash, the assumption of euro 0.8 million in intercompany liabilities, and contingent liabilities of euro 1.0 - euro 1.5 million. The acquisition was structured as a stock purchase.
Key attributes of Biomateriali:
o Biomateriali designs, manufactures, and markets straight and bifurcated
polyester arterial prostheses. Polyester vascular grafts are used in a
variety of arterial replacement and repair surgeries, predominantly
open abdominal aortic aneurysm ("AAA") repair. Biomateriali has been
manufacturing these prostheses under the "Albograft" brand for over 10
years.
o Biomateriali's net revenues were approximately euro 2.1 million in the
last twelve months. Depending upon the amount of contingent liabilities
eventually paid, the acquisition was executed at a 1.7x - 2.0x multiple
of LTM revenues.
o Biomateriali's Albograft implants are CE-marked and distributed
exclusively by Edwards Lifesciences throughout Europe and in select
international markets. Biomateriali also supplies straight polyester
conduit grafts for cardiovascular surgery on an OEM basis to the Sorin
Group.
o Biomateriali has 30 employees in a 15,000 square foot manufacturing
facility in Brindisi, Italy.
"The polyester vascular graft market continues to represent one of the larger markets in vascular surgery," said David B. Roberts, President of LeMaitre Vascular. "LeMaitre Vascular can now offer implants for both endovascular and open aortic repair."
"Biomateriali's high quality vascular grafts fit well in our product range and will leverage our growing European sales force," said George W. LeMaitre, Chairman and CEO of LeMaitre Vascular. "We recently announced plans to sell our products directly to Italian hospitals starting in January, 2008. The Biomateriali acquisition should complement this direct-in-Italy initiative."
The Company does not expect to record Biomateriali revenue for the balance of 2007. It is expected that this acquisition will be dilutive in 2008. The Biomateriali acquisition does not change the Company's previous 2007 revenue guidance of $40.5 million to $41.3 million. The Company will issue its financial guidance for 2008 at its next earning call.
LeMaitre Vascular will be hosting a conference call to discuss the Biomateriali acquisition at 8:30am EST, Friday, December 21, 2007. The dial-in number is (866) 314-5232 (+1-617-213-8052 for international callers), using passcode 80933846. A replay of the call will be available for 30 days thereafter at http://www.lemaitre.com/investor.
Source: LeMaitre Vascular, Inc.
CONTACT: Aaron Grossman, Investor Relations of LeMaitre Vascular, Inc.,
+1-781-221-2266 x127
Web site: http://www.lemaitre.com/
