An Arden Hills medical device firm is being acquired for about $85 million by a London-based manufacturer of medical technology and specialty pharmaceuticals.
BTG PLC group will pay $84.5 million in cash for Galil Medical, plus up to $25.5 million in future regulatory and revenue milestone payments, according to an announcement Friday from the companies.
Galil has about 100 employees, including about 40 in the Twin Cities, said Chief Executive Martin Emerson. Emerson said he will leave the company with the acquisition but added that the “vast majority” of senior management and workers will retain their jobs.
“BTG is really excited about the talent base that we have here,” he said in an interview. “Their objective is to build on that.”
Galil Medical makes “cryoablation” technology used in interventional oncology procedures. The company moved from Israel to Arden Hills in 2009.
In a news release, BTG said the Arden Hills company had global revenue in 2015 of $22 million and a loss before taxes that year of $8.5 million. Louise Makin, the chief executive at BTG, said in a statement: “This bolt-on acquisition builds on our leadership in interventional oncology, expanding our portfolio of minimally invasive therapies with the leading technology in the cryoablation of kidney cancer. It also offers significant pipeline opportunities, including lung and bone metastases if regulatory approvals are granted.”
BTG’s stock is listed on the London Stock Exchange. The company has about 1,200 employees, and reported revenue of about $530 million for the 12-month period ending March 2015.
Investors in the local company include Thomas, McNerney & Partners, The Vertical Group and Investor Growth Capital. Up until 2008, Emerson was the chief executive at Minnetonka-based American Medical Systems, a device company that was acquired in June 2011.
The transaction is expected to close by the end of June 2016.