Cardiovascular Systems Inc. shareholders on Thursday approved an $850 million deal to sell the New Brighton-based company to Abbott Laboratories.
Abbott closes on $850 million acquisition of New Brighton's Cardiovascular Systems
With the purchase, Abbott now has 5,000 employees in Minnesota.
April 27, 2023 at 8:30PM
The two companies then turned around and closed the deal in the afternoon, significantly increasing Abbott's presence in Minnesota.
"The acquisition of CSI is a component of an overall investment in our vascular portfolio that enhances our ability to care for patients with peripheral and coronary artery disease," Lisa Earnhardt, executive vice president of medical devices for Abbott, said in a statement.
The deal pays CSI stockholders $20 per share.
Illinois-based Abbott and CSI jointly announced the deal in February. According to a proxy filing, Abbott CEO Robert Ford first approached Scott Ward, Cardiovascular's chief executive, about a possible deal in early November.
The deal was originally announced at a value of $890 million. A Thursday regulatory filing from CSI listed the price at approximately $850 million. The price change was due to a change in the CSI share count between the announcement and the closing of the deal.
CSI specializes in atherectomy, a minimally invasive procedure for arterial plaque buildup.
Abbott established a footprint in Minnesota when it acquired Little Canada-based St. Jude Medical in 2017 for $25 billion. With the addition of CSI, Abbott will have about 5,000 employees in Minnesota.
Abbott reported its first-quarter financial results last week, posting a 15% increase in medical device sales. On the conference call to discuss the results, Ford plugged the pending deal.
"It's a great strategic fit. They have a strong position in a growth area that we like," Ford said last week.
Abbott has five categories of cardiovascular business in its medical devices division: rhythm management, electrophysiology, heart failure, vascular and structural heart. All saw sales growth in the first quarter.
Abbott's electrophysiology and structural heart businesses both have a strong presence in Minnesota.
CSI is now a wholly owned subsidiary of Abbott, so Thursday was the last day its shares traded on the Nasdaq market.
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