Here are highlights from Wednesday’s Analyst Blog:
Angio Completes Key Acquisition
AngioDynamics ANGO $355 million $12.44 May 21, 2012
the management believes that the company will increase proficiency and competitiveness on the basis of economies of scale, post-acquisition. The enhanced financial profile before the onset of its next fiscal year has boosted management confidence in achieving the expected financial outlook.
The acquisition is expected to increase Angio’s market share to twice the existing size for the vascular access market. This is because the company will be in a position to offer an enhanced product portfolio to its customers after the acquisition. The addition of the well regarded NAMIC fluid management brand is a major benefit for Angio.
The brand has a strong international presence and will allow the company to leverage sales of its peripheral vascular portfolio. Furthermore, Angio is also scheduled to benefit from the technical knowledge and skill-set inherent at Navilyst Medical.
Despite its worldwide presence, the domestic market contributes 85% of total revenue to Angio. The acquisition will allow the company to focus on international expansion. The deal offers an invaluable opportunity for increased profitability, sales force improvement and generation of significant cash flow for Angio.
8 cents $3.4 billion $50 million
January 31, 2012 $372 million $150 million $97 million
Navilyst Medical is a medical solutions provider with a significant emphasis on the markets for cardiology, radiology and oncology. In 2008, Avista Capital Partners, a private equity firm, acquired the company.
As per the terms of the transaction, investment funds affiliated with Avista Capital Partners now own 9.4 million shares of AngioDynamics Common Stock and have inked a stockholder agreement with the company. Angio has also incorporated two additional positions in its management to accommodate the partners of Avista in order to tap their experience and know-how.
CR Bard BCR
Angio currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also maintain our long-term Neutral recommendation on the stock.
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