Baxter to acquire ApaTech equity

Baxter will acquire all of ApaTech's outstanding equity for total consideration of up to $330m, in a definitive agreement announced this week. 

As part of the aquisition, Baxter will acquire Actifuse, a silicate substituted calcium phosphate synthetic bone graft material that is currently marketed in the US, EU and other select markets around the world. It will also acquire manufacturing and R&D facilities located in the UK, US and Germany.

Ron Lloyd, vice president and general manager, BioTherapeutics and Regenerative Medicine, Baxter, said: "This is a significant step in enhancing Baxter's position in the rapidly growing orthobiologics space, and our leadership in regenerative medicine. Actifuse will allow us to immediately enter the emerging bone fusion category."

ApaTech a private equity-backed, UK-based orthobiologic products company generated sales of approximately $60m in 2009. Baxter and ApaTech will work to ensure uninterrupted operations, product distribution and ongoing support and service for customers, distributors and business partners.

Simon Cartmell, CEO, ApaTech commented: "This is a great event for ApaTech, Baxter, our customers and our employees. The combination of our market presence and insights with the resources of Baxter will enable us to deliver innovative new technologies to more patients worldwide."

The agreement includes an upfront cash payment by Baxter of $240m. Baxter may make additional payments of up to $90m related to the achievement of sales milestones. The transaction is expected to close in the first quarter 2010, subject to customary closing conditions and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.