December 3, 2023

DealBook: Endo to Acquire American Medical for $2.9 Billion

Endo Pharmaceuticals agreed on Monday to buy American Medical Systems for $2.9 billion in cash to continue adding to its treatments for urology and pain.

Under the terms of the deal, Endo will pay $30 a share for American Medical’s outstanding stock and convertible securities, 34 percent above American Medical’s closing share price on Friday. Endo will also assume and pay off $312 million of American Medical’s debt.

The deal is Endo’s third in 12 months. The company announced last May that it would buy HealthTronics for $223 million, and in September said it would acquire Qualitest for $1.2 billion.

In American Medical, Endo will gain what it described as promising medical devices and services, including treatments for erectile dysfunction, incontinence and prostate problems.

The combined company will have 4,000 employees and is expected to generate about $3 billion in revenue and $1 billion in profit this year.

American Medical, based in Minnetonka, Minn., reported $542.3 million in revenue and $87 million in net income last year. It has 1,255 employees.

Endo said that it had financing commitments from Morgan Stanley and Bank of America Merrill Lynch to help pay for the deal. It also received legal advice from Skadden, Arps, Slate, Meagher Flom.

American Medical was advised by JPMorgan Chase and the law firm Latham Watkins.

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