Pharma BD Deal Intelligence

ICU Medical, Inc. / Pfizer Inc. (Hospira Infusion Systems business)

2016 · Asset Purchase · $1.0B · Complete

WRONG BY 34 POINTS

Strategically sound consolidation that delivered scale but was dragged down for years by integration costs, quality problems, and weak shareholder returns

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The coverage arc

Oct 06, 2016 BioPharma Dive Neutral

BioPharma Dive characterized the transaction as Pfizer continuing its trend of shedding non-core assets, with the Hospira Infusion Systems carve-out fitting a…

Oct 06, 2016 ICU Medical 8-K Exhibit 99.1 (announcement press release) Bullish

Value-creating and risk mitigated deal structure... will create a leading pure-play infusion therapy company, with estimated pro forma combined revenues of…

Feb 06, 2017 MassDevice Neutral

MassDevice noted the price was adjusted down to ~$900M from the original $1B due to HIS performance softness pre-close, but ICU Medical still emerged as a…

Source summaries from our enrichment pipeline; follow links for originals.

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ICU Medical agreed to acquire Pfizer's Hospira Infusion Systems business (IV pumps, solutions, devices) for $1B in cash and stock: $600M cash plus $400M in newly issued ICU Medical shares (giving Pfizer a 16.4% stake). Combined company pro forma revenue ~$1.45B. Final consideration adjusted to ~$900M for performance changes. Closed February 6, 2017.

Did it work? Outcome assessment

Strategically sound consolidation that delivered scale but was dragged down for years by integration costs, quality problems, and weak shareholder returns

Strategic verdict
Partially Achieved
Financial impact
Accretive
Pipeline outcome
Assets Advanced

Key facts

Related deals — scored

DealYearValueOutcome
ICU Medical, Inc. / Pfizer Inc. (Hospira Infusion Systems business) (this deal)2016$1.0B52
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Kohlberg Kravis Roberts & Co. / PRA International (Genstar Capital)2013$1.3B91
Stryker Corporation / MAKO Surgical Corp.2013$1.6B91
Quintiles Transnational Holdings Inc. / IMS Health Holdings, Inc.2016$17.6B91
DPx Holdings B.V. (JLL Partners 51% / Royal DSM 49%) / Patheon Inc. + DSM Pharmaceutical Products2013$2.6B90
Pamplona Capital Management, LLP / PAREXEL International Corporation2017$5.0B90

Compare all 7 side-by-side →

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