Medtronic/Avecor
This article was originally published in The Gray Sheet
Executive Summary
Completion of the $105 mil. Avecor buy March 8 allows creation of a combined Medtronic Perfusion System unit consisting of Avecor and Medtronic's former blood management and cardiopulmonary organization ("The Gray Sheet" Dec. 14, p. 8). Displacement of about 700 positions, including a net reduction of 200, will result primarily from the closure of two newly redundant Medtronic manufacturing facilities. Medtronic plans to phase out production of its Anaheim, California-made Maxima blood oxygenator in favor of Avecor's Affinity, and relocate production of the Medtronic Bio-Pump centrifugal blood pump from Eden Prairie, Minnesota. Medtronic plans an unspecified "one-time transaction-related and restructuring charge" related to the merger during the fourth quarter (ending April 30)