Baxter enter agreement to acquire Baxa Corporation

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Intravenous products: News Medical report “Baxter International Inc. (NYSE:BAX) announced today that it has entered into a definitive agreement to acquire Baxa Corporation, a privately held company based in Englewood, Colo., with additional operations in Florida and the United Kingdom. Baxa develops pharmacy technology that enhances the efficiency and safety of oral and IV dose preparation and delivery. The addition of Baxa’s product lines will complement Baxter’s portfolio of nutrition products and drug delivery systems and supports patient safety.

“With these new offerings, Baxter will be able to provide a comprehensive solution to fulfill the majority of patients’ nutritional requirements and increase efficiency in the pharmacy,” said Robert M. Davis, president of Baxter’s Medical Products business. “Bringing this expertise together with Baxter’s commercial capabilities and global reach will enable us to continue to meet our customers’ evolving needs and extend our position in IV nutrition and fluid delivery.”

The transaction includes a total upfront cash consideration of $380 million and is expected to close following satisfaction of customary closing conditions and the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Annual sales for Baxa were approximately $150 million in 2010, and Baxter expects the future top-line growth of this business to be accretive to the company’s future sales growth. In addition, Baxter expects this transaction to be neutral to full-year 2012 earnings excluding dilution of approximately $0.03 to $0.05 per diluted share related to acquisition accounting and transaction-related expenses, and increasingly accretive thereafter.”

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