CryoLife Announces Definitive Agreement to Acquire JOTEC - Seite 2

Mr. Mackin added, "We also expect the JOTEC new product pipeline and R&D capabilities to drive longer-term growth beyond the five year horizon, particularly as their most innovative products enter the U.S. market.  We plan to utilize CryoLife's clinical and regulatory expertise to gain FDA approval for these products, which we believe will allow for entry into the U.S. market."

Thomas Bogenschütz, Chief Executive Officer of JOTEC, commented, "CryoLife is ideally positioned to accelerate adoption of our products through its highly complementary and global cardiac and vascular surgery business.  We are looking forward to working with CryoLife's team to drive growth of our existing business, expand into new geographies, and accelerate our R&D initiatives in key markets such as the U.S."

JOTEC generated revenue of approximately €41 million in 2016, representing compound annual growth of approximately 17 percent over the preceding five years.  JOTEC generated revenues of €43 million, or approximately $51 million at current currency exchange rates, for the twelve months ended June 30, 2017. 

Strategic Rationale for the Transaction

• Provides CryoLife with:
• • Technologically advanced and highly competitive product portfolio that is taking market share
  • A strong new product pipeline and outstanding R&D capabilities
  • Near-term and longer-term revenue growth drivers through 2028; and
  • Access to the $1.2 billion U.S. stent graft market, which is expected to grow to approximately $1.5 billion by 2021
• Increases CryoLife's addressable market opportunity via access to the current $2.0 billion global stent graft market, which is expected to grow to approximately $2.5 billion by 2021
• Accelerates CryoLife's direct sales strategy in key European markets
• Creates significant cross-selling opportunities by leveraging CryoLife's and JOTEC's existing direct sales organizations
• Drives projected high single-digit revenue growth, expands gross margin, and yields 20 percent plus operating margin over a five-year period

Terms of the Agreement