Bayer inks $361 million deal to purchase Possis Medical Inc.

German pharmaceutical and chemical company Bayer AG agreed to buy Minneapolis, MN-based Possis Medical Inc. for $361 million. The all-cash deal, set to close later this quarter, is for $19.50 a share, roughly a 36% premium above Possis' stock price at press time. It's been four years since the company's stock has traded around the $19 level. The deal is expected to help Bayer expand its footprint in the field of cardiovascular technology.

The merger combines Bayer's Medrad subsidiary, a provider of systems used to diagnose cardiovascular and other diseases, with Possis' lineup of devices used to treat narrowed or blocked arteries. Possis Medical's AngioJet thrombectomy system debuted in 1997, and several iterations have been released since then. The company had revenue of $67 million and employed about 280 people for its fiscal year that ended July 31, 2007.

"This merger will capitalize on both companies' strengths to deliver growth in our current markets and create a formidable cardiovascular portfolio in the future," said Medrad's president and chief executive, John E Friel. "We welcome Possis Medical as the cornerstone of Medrad's cardiovascular strategy. It is a truly compatible partnership in terms of product performance, company growth and employee culture."

Bob Dutcher, president and CEO of Possis, said the companies '"shared history of innovation" bodes well for future success and product development beyond his company's core business.

"In addition, Medrad will enable us to broaden our geographic reach without adding infrastructure," Dutcher added.

According to some estimates, more than 80 million people in the United States are affected by some form of cardiovascular disease.