Trumbull, Connecticut-based CooperSurgical announced earlier this week that it is buying Cook Medical’s Reproductive Health Division for $875 million.

The $875 million be paid in a $675 million chunk at closing and then the additional $200 million will be paid out over four annual installments of $50 million. The deal is expected to go through in the second quarter.

Cook Medical’s Reproductive Health Division is based in Bloomington, Indiana and manufactures minimally invasive medical devices for gynecology, fertility, and obstetric markets. It brought in $158 million sales in 2021.

CSI noted several key benefits of the acquisition, ranging from strategic to geographic to expanded portfolio offerings. First, the purchase will help it expand geographically in several Asia Pac countries, a region that CSI currently lists as under-indexed. The partnership is expected to accelerate opportunities in China by expanding ObGyn medical device direct selling avenues in Asia Pac and EMEA, according to a CSI presentation.

Further, CSI projects the acquisition will expand and leverage existing CSI labor and delivery via the addition of Cook Medical’s complementary devices to CSI’s portfolio. The acquisition of Cook Medical’s Reproductive Health division will add 115 global employees as well. Lastly, potential savings could occur if CSI leverages Costa Rica manufacturing facility, which could also help with efficiencies of production transfer.

Devices from Cook Medical that will be added to CSI’s portfolio will include a variety of fertility and ObGyn products. The fertility products range from needles to equipment to pipettes to catheters and will complement CSI’s current portfolio offerings. Likewise, the ObGyn products will also complement present offerings and will entail Cook’s cervical ripening balloon as well as Bakri balloon (for post-partum hemorrhage).

“Bringing Cook’s reproductive health products into the CooperSurgical business is an excellent strategic fit,” said Holly Sheffield, president of CooperSurgical in the press release. “It will allow us to expand on our international footprint, specifically in the Asia-Pacific region and provide best-in-class labor & delivery products to clinicians.”

These devices will further bolster CSI’s growing portfolio. CSI already offers devices for fetal monitoring, infant critical care, vacuum-assisted deliveries, and c-sections. Further, in March 2021, CSI added Fetal Pillow, which raises the infant’s head for a safer delivery when a c-section is required at full dilation. CSI also added cord tissue and cord blood storage to its portfolio in December 2021, which it acquired from Generate Life Sciences.

Photo: Natali_Mis, Getty Images