SILVERWOOD PARTNERS ADVISES CARDIOTECH INTERNATIONAL, INC. IN SALE OF GISH BIOMEDICAL, INC. SUBSIDIARY TO MEDOS MEDIZINTECHNIK AGSHERBORN, MA – July 9, 2007
CardioTech International, Inc. (AMEX: CTE), a developer and manufacturer of advanced materials and medical devices for the treatment of cardiovascular and other diseases, has completed the sale of its Gish Biomedical, Inc. subsidiary in a stock transaction to Medos Medizintechnik AG (“Medos”) for a purchase price of approximately $7.5 million. Medos is a developer and manufacturer of medical devices for cardiac surgery, extracorporeal membrane oxygenation (“ECMO”) and Ventricle Assist Devices (“VAD”). Silverwood Partners was the exclusive financial advisor to CardioTech.
Commenting on the agreement with Medos, Michael Adams, President and CEO of CardioTech, said “The sale of Gish provides Medos with an excellent opportunity to enter the US market. CardioTech’s direction is targeted to being a world class technology business focused on customer-driven solutions in the medical device industry. The sale will permit the redeployment of capital into our ongoing growth initiatives focused on selling complex medical devices, and licensing and selling specialized materials to medical device manufacturers. The sale of Gish is an important milestone which allows CardioTech to direct management expertise and resources into executing the Company’s strategic growth plan.”
Dr. Thomas Theisen, Chief Sales Officer, Medos, said “The acquisition of Gish represents an excellent opportunity to achieve a significant position in the US market for disposable medical products used in cardiopulmonary surgery. Buying Gish also provides a solid platform for selectively introducing Medos’ innovative products from the ECMO and VAD product lines to the US market using the well respected Gish brand. Medos has the structure to capitalize on combining two strong R&D programs in the global medical device marketplace.”
About CardioTech International
CardioTech International, Inc. is a medical device company that designs, develops, manufactures and sells innovative products and materials for the treatment of cardiovascular, orthopedic, oncology, urology and other diseases. The Company’s business model calls for leveraging its technological and manufacturing expertise in order to expand its royalty and license fee income, develop next generation polymers and manufacture new and complex medical devices. CardioTech is conducting its first clinical trial for regulatory approval in Europe for its CardioPass™ synthetic coronary bypass graft. The Company generates revenues from sales of advanced medical devices and materials, as well as from contracted product design and development services. More information about CardioTech is available at its website: http://www.cardiotech-inc.com.
About Medos Medizintechnik AG
Medos Medizintechnik AG was established in 1987. Headquartered in Stolberg near Aachen/Germany, Medos today has subsidiaries in Radeberg near Dresden/Germany and in Herouville Saint Claire/France. Medos has minority interests in Autotissue GmbH Berlin/Germany and in Beijing Medos AT Biotechnology Co. Ltd. in China. Medos is Germany’s market leading manufacturer of cardiovascular assisting systems. Medos employs presently 165 employees and has 30 sales representatives worldwide.
About Silverwood Partners
Silverwood Partners is a sector focused investment bank that provides M&A and private capital raising advisory services to information, communications, financial services, and digital imaging technology companies, and healthcare, industrial and consumer companies. Silverwood delivers acquisition, divestiture or corporate sale advisory, strategic-financial advisory and institutional financing services to companies in its targeted business sectors. For additional information, please visit www.silverwoodpartners.com.
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