Murray Hill, N.J.-based C.R. Bard is acquiring Liberator Medical, a direct-to-consumer distributor of durable medical equipment, for $181 million in cash, as the multinational company aims to enhance its position in the U.S. home care market.
The deal is a strategic fit for Bard, which develops, manufactures and markets vascular, urology, oncology and surgical specialty products. Liberator has an estimated 20 percent market share in the urology segment, says Lawrence Biegelsen, a senior analyst with Wells Fargo Securities.
Richard Newitter of Leerink Research adds that the deal is in line with recent Bard buyouts, such as Medafor for $200 million and Rochester Medical for $262 million. “While we think the Urology franchise will take a breather from M&A as it digests [Liberator], we would expect [Bard] to still be acquisitive and in the market for similar size transactions across its other franchises going forward.”
The Bard-Liberator transaction is expected to close in the first quarter of 2016.
National expenditures within the DME market will increase from $45.8 billion in 2015 to $71.3 billion in 2023, according to the Centers for Medicare &Medicaid Services.
Liberator’s key competitor, 180 Medical, was acquired for $231 million by Convatec in 2012, says Biegelsen. — Jonathon Shacat