Bard Agrees to Acquire Liberator Medical

Murray Hill-based C. R. Bard, Inc. has entered into a definitive agreement to acquire Liberator Medical Holdings, Inc. (Liberator) for approximately $181 million. This transaction is structured as a merger, has been approved by each company’s board of directors, and is subject to customary closing conditions, including approval of the shareholders of Liberator and regulatory approvals.

Liberator is a direct-to-consumer distributor of medical products classified as Durable Medical Equipment (DME). The Centers for Medicare and Medicaid Services (CMS) estimates that national expenditures within the DME market will increase from $45.8 billion in 2015 to $71.3 billion in 2023. Liberator’s revenue comes from supplying products to meet the growing requirements for general medical supplies, primarily urological catheters, ostomy supplies, mastectomy fashions and diabetic supplies. Liberator provides consumers with products from multiple manufacturers. Bard’s products represent a small minority of Liberator’s current revenue, and we intend to continue to promote other manufacturers’ products directly to consumers.

This acquisition represents a compelling strategic fit for Bard and enhances its position in the home care market in the United States. Liberator’s combination of marketing, industry expertise and customer service has demonstrated success as they communicate directly with patients and their physicians regarding prescriptions and supply requirements and offer a simple, reliable way to purchase needed medical supplies on a recurring basis.

Timothy M. Ring, chairman and chief executive officer, commented, “This acquisition is a key building block in our strategy to access faster growing markets. As the population ages and more healthcare is expected to occur outside of the hospital setting, we believe that having direct access to the patient in the home is strategically important. We look forward to adding a strong distribution platform with potential for future growth to our product and technology platforms. We also look forward to continuing to work with the other manufacturers that are part of Liberator’s product offering.”

The company expects the transaction to close in the first quarter of 2016 and add approximately $70 million to 2016 net sales and to be slightly accretive to adjusted cash earnings per share in 2016. The company estimates that in 2017 this acquisition will increase the organic revenue growth rate of the company and contribute between 5 and 10 cents of adjusted cash earnings per share.

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