Swedish medical technology company Getinge’s subsidiary Atrium Medical is selling its biosurgery business to HJ Capital 1, a subsidiary of SeCQure Surgical.
Atrium Medical stated that the sale is expected to close in the fourth quarter of this year, subject to customary closing conditions and the receipt of regulatory approvals.
The company’s biosurgery business recorded sales of nearly SEK128m ($14.16m) last year.
Getinge added the biosurgery business through the acquisition of Atrium Medical for $680m in 2011 and added it to its therapeutic portfolio. The business is dedicated for the development of biological, mechanical and therapeutic solutions for soft tissue reinforcement following trauma, surgery and other interventional procedures.
The company also stated that the biosurgery business has been relatively small segment within its overall portfolio and it is the only therapeutic asset in the general surgery field. The divestment is part of its strategy to focus on its core therapeutic solutions.
The sale of the business is a carve-out of assets from Atrium Medical business and it includes the sale of all assets and liabilities relating to the biosurgery business.
The transaction excludes the mesh product liability claims raised against Atrium Medical in relation to products sold before the closing and also the associated insurance claims of Atrium Medical.
SeCQure Surgical CEO Joseph Tang said: “The acquisition of this well-respected line of implantable materials for soft tissue repair will greatly complement our current offering of surgical staplers and energy devices, and delivers on our commitment to build a world-class surgical portfolio for our customers worldwide.”
As part of the sale contract, SeCQure Surgical will begin distribution of Atrium’s meshes worldwide from next January. Customers will be serviced and orders will be placed through their current channels.
The firm said: “SeCQure Surgical has put together a dedicated team of seasoned professionals to develop and innovate the hernia mesh business and expand its distribution.
“SeCQure Surgical will work closely with its network of surgeons, clinicians, and healthcare providers to deliver safe and effective solutions for hernia repair surgery.”