Patricia Industries’ Laborie to acquire Cogentix Medical for US $239M

Cogentix Medical, Inc. (NASDAQ: CGNT), a portfolio company of Accelmed Growth Partners LP, has agreed to be acquired by Laborie Medical Technologies Canada ULC at US $3.85 per share in cash for a total consideration of approximately US $239 million.

Founded in 1967 by Ray Laborie, Laborie Medical Technologies Canada is owned by Patricia Industries, a long-term owner that invests in companies and work to develop each company to its full potential. Patricia Industries was founded in Sweden by the Wallenberg family and is owned by the family’s industrial holding company Investor AB. Patricia Industries acquired Laborie in 2016 and owns more than 97% of the company, with management owning the remaining equity.

The transaction will close in the first half of the second quarter of 2018. Upon completion of the transaction, Cogentix Medical will become a wholly owned subsidiary of LABORIE.

Accelmed Growth Partners and Lewis Pell, who collectively beneficially own shares representing approximately 60% of Cogentix Medical’s outstanding common stock, have entered into tender and support agreements with Laborie Medical Technologies.

New York and Israel based Accelmed Growth Partners L.P. invested US $25 million at US $1.55 per share in Cogentix in 2016.

K&L Gates LLP and Dorsey & Whitney LLP are acting as legal counsel to Laborie and Cogentix Medical respectively.

“This transaction helps us achieve our vision of creating value for our investors, patients and physicians in the urology and gynecology markets,” said Darin Hammers, President and CEO of Cogentix Medical. “LABORIE has a track record of success in these markets and we believe that the addition of our urology and gynecology assets to their existing product lines will ensure that our products are available to the many patients and physicians who may benefit from them. We believe that this transaction is also a compelling financial opportunity that delivers significant value to our investors who have supported our evolution to becoming a valued player in the urology market.”

LABORIE is a leading global developer, manufacturer and marketer of innovative medical technology and consumables used in gastrointestinal procedures and for the diagnosis and treatment of pelvic health in the Urology, Gynecology, and Colorectal fields.

Minnetonka, Minnesota based Cogentix Medical, Inc., is a global medical device company. It designs, develops, manufactures and markets products for flexible endoscopy with its unique PrimeSight™ product lines featuring a streamlined visualization system and proprietary sterile disposable microbial barrier providing users with efficient and cost-effective endoscope turnover while enhancing patient safety. It also commercializes the Urgent® PC Neuromodulation System, an FDA-cleared device that delivers Percutaneous Tibial Nerve Stimulation (PTNS) for the office-based treatment of overactive bladder (OAB).

photo credit: Cogentix Medical

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal and CanadaMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, the most sophisticated and advanced all private capital and public market financing database.