Who will be the next Medtronic? What will be Minnesota's next breakthrough industry? James Walsh will provide the latest information and commentary on the people, companies and trends driving innovation in Minnesota. From visionary entrepreneurs to game changing technologies, this blog offers a window into the future of Minnesota's economy.
Johnson & Johnson said on Wednesday will acquire Maple Grove-based SterilMed, a business that specializes in selling reprocessed medical devices.
The terms of the agreement were not disclosed.
Ethicon Endo-Surgery Inc., a Johnson & Johnson medical device company, said the acquisition “enables expansion in a rapidly growing market segment” and broadens its portfolio. Ethicon Endo-Surgery develops devices involved in general and bariatric surgery, gastrointestinal health, gynecology and surgical oncology.
“The time is right for Ethicon Endo-Surgery and SterilMed to come together, given the rapid changes occurring in the U.S. healthcare system,” said Karen Licitra, Ethicon Endo-Surgery’s company group chairman and worldwide franchise chairman in a statement. “Together we can continue our focus on developing innovative surgical solutions, while providing healthcare facilities a wider range of flexible product options to save money, reduce medical waste and maintain quality care for patients.”
SterilMed will operate as a “standalone company” in the Ethicon Endo-Surgery franchise and continue to be based in Maple Grove, Ethicon Endo-Surgery said. SterilMed employs about 800 people. In addition to selling reprocessed medical devices and equipment, SterilMed also provides small equipment repair services to healthcare providers.
Last year, SterilMed was purchased by two private equity firms in the ballpark of $200 million. At the time, the company had annual revenues of more than $100 million.