Massachusetts-based Haemonetics Corp. announced Sunday that it will buy St. Paul, Minnesota-based Hemerus Medical for up to $27 million. It will pay another $551 million to acquire certain blood filtration and processing assets of Pall Corp.
The payment to Hemerus will occur in stages and is contingent upon Hemerus meeting regulatory success with its patented whole blood collection system, SOLX. The goal for Haemonetics is to get a slice of the global manual whole blood collection market, which its CEO Brian Concannon described as a $1.2 billion market. And with it a return to profitability that has eluded the Massachusetts company recently.
Hemerus, which developed the SOLX system through partial funding from the U.S. Army, has filed a new drug application with the U.S. Food and Drug Administration. The company believes that its blood collection and storage system is superior to current systems for managing blood because it can extend the quality and effective life of red blood cells, according to a news release. The company expects FDA approval sometime this year.
The acquisition will boost Haemonetics effort to enter the whole blood collection market.
While the Hemerus acquisition is small, Haemonetics is shelling out a whopping $551 million to acquire the blood collection, filtration and processing product lines of Pall Corp., based in Port Washington, New York.
Haemonetics is betting big on these two acquisitions and needs them to be successful. In the quarter ended March 31, the company’s net income declined 15.2 percent to $17.8 million compared with $21 million a year ago. Earnings per diluted share fell to 69 cents from 81 cents. Including the fourth quarter it reported Monday, Haemonetics has lost money in four successive quarters.