CooperCompanies to Acquire Cook’s Reproductive Health Business for $875M

Global medical device company CooperCompanies (NYSE: COO) recently revealed that it has entered into an agreement to acquire Cook Medical’s Reproductive Health business for $875 million.

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Cook Medical is a manufacturer of minimally invasive medical devices with a focus on the fertility, obstetrics and gynecology markets.

Under the terms of the deal, Cooper will pay a total consideration of $875 million — 200 million to be paid in four installments of $50 million each and $675 million upon the completion of the deal.

Strategic Impact

With annual revenue growth of 17% and revenues of about $158 million in 2021, Cook Medical’s Reproductive Health business is expected to be a beneficial addition to Cooper Companies’ portfolio.

Moreover, the company expects the buyout to be accretive to its non-GAAP earnings per share to the tune of $0.60 in the first year after closing, excluding one-time charges and deal-related amortization.

Management Commentary

The CEO of CooperCompanies, Al White, said, “This acquisition is an excellent strategic fit for CooperSurgical. We’re improving our international fertility footprint, especially within the Asia-Pacific region, and adding highly synergistic and respected labor and delivery devices to our ObGyn portfolio. These high-quality products will integrate seamlessly into our business and support CooperSurgical’s vision of a world with healthy women, babies and families.”

Stock Rating

Consensus among analysts is a Moderate Buy based on 2 Buys and 3 Holds. The average CooperCompanies price target of $457.75 implies 18.3% upside potential from current levels. Shares have gained 0.51% over the past year.

News Sentiment

News Sentiment for COO is Neutral based on six articles over the past seven days. 100% of the articles have Bullish sentiment, compared to the sector average of 58%.

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