Bloomington-based Cook Medical says it is selling its reproductive health business to CooperCompanies (NYSE: NYSE: COO), a medical device manufacturer in California specializing in reproductive health. Cook says the deal is valued at $875 million.
Under the terms of the deal, CooperCompanies will pay $675 million at the time of closing and a further $200 million in four annual installments of $50 million each.
Cook’s reproductive health business manufactures minimally invasive medical devices for fertility, obstetrics, gynecology, in vitro fertilization, and assisted reproductive technology.
Cook says no manufacturing jobs are at risk and no facilities are being sold. The companies say after the closing of the transaction, Cook will continue to manufacture products for CooperSurgical during a two-year transition period and will increase manufacturing capacity to keep up with growth.
“Like we always have been, we remain committed to the communities where we have facilities and employees, including Spencer, Vandergrift, and Brisbane (Cook properties) where these products are manufactured,” said Pete Yonkman, president of Cook Medical and Cook Group. “This agreement will allow us to invest in future growth and new technologies. The rest of the Cook organization will continue as privately held, family-owned companies with no plans to change that status.”
The proposed transaction is subject to regulatory approvals.