Bayer HealthCare LLC, an unit of German conglomerate Bayer AG (BYR.L, BAYRY.PK, BAYZF.PK), in an idea to broaden its portfolio in the field of contraception, has reached a merger deal with Conceptus, Inc. (CPTS), the California-based developer of the Essure procedure, the non-surgical permanent birth control method, which is sold in the U.S. and other countries. Bayer, through this acquisition, would be able to offer a complete range of short-term, long-term and permanent contraceptive choices for women.
Bayer would launch a public tender offer to buy all of Conceptus shares within the next ten business days. The transaction values Conceptus at around $1.1 billion, or about 852 million euros, representing $31.00 per share cash. Closing may occur in the mid-year 2013.
Conceptus recorded net sales of $141 million, or nearly 110 million euros for its fiscal 2012, with adjusted EBITDA of $28.2 million, or roughly 22.0 million euros.
Keith Grossman, President and CEO of Conceptus, Inc., said, "Essure has been well accepted in the market for more than ten years and demonstrated robust growth over this time. We believe that under Bayer's ownership, the Essure product will more rapidly become the standard of care in our established markets, and will benefit in new markets from Bayer's global presence. Our customers and patients will benefit from this increased access to the benefits of Essure."
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