St. Jude Medical to buy AGA Medical for $1.3B, adding heart devices

St. Jude Medical Inc. (NYSE: STJ) said Monday it will acquire fellow Minnesota medical device maker AGA Medical Holdings Inc. (NASDAQ:AGAM) for $1.3 billion.

Under terms of the all-cash agreement, St. Jude, based in Little Canada, will pay $20.80 for each share of AGA stock and assume $225 million in AGA debt. The company expects to close the deal by the end of the year.

Except for one-time acquisition-related charges, St. Jude said its 2010 profit guidance remains unchanged.

Acquiring AGA will boost St. Jude’s presence in devices that repair structural heart damage, including faulty valves and atrial fibrillation (irregular quivering of the heart). AGA, based in Plymouth, generated nearly $200 million in sales last year.

“St. Jude Medical believes that the acquisition of AGA Medical will benefit customers, employees and shareholders of both companies,” St. Jude CEO Daniel J. Starks said in a statement. “AGA Medical has developed technologies with proven clinical outcomes. It has a strong core business with an enviable pipeline of products and clinical trials. We look forward to AGA Medical employees joining St. Jude Medical and to the further development of these programs.”

AGA will become part of St. Jude’s cardiovascular unit. Its CEO, John Barr, also will join St. Jude Medical.