Roche Offers to Buy Disetronic's Insulin Pump Division
Roche, best known for its Accu-Chek family of blood-glucose monitors, made an offer in February 2003 to buy Disetronic's insulin pump division. A decision on the purchase should be finalized in May or June if Disetronic's shareholders accept Roche's tender offer of two nonvoting Roche equity securities and a price of 670 Swiss francs (about $490 U.S. dollars) per share.
The February 2003 edition of Diabetic Investor puts the total price of the deal at $900 million, after Roche sells back Disetronic Injection Systems AG to Disetronic's founder and chairman for $310 million.
Roche says that the deal will make its Diagnostics division a leader in integrated diabetes management. It also believes that its "global presence and experience will provide an optimal platform for further growth in the insulin pump market (including accessories), currently valued at approximately 700 million Swiss francs (about $514 million U.S. dollars), with an average growth rate of 11 percent."
The proposed acquisition is subject to acceptance by at least 80 percent of Disetronic shareholders and to approval by regulatory authorities.
Both companies have their headquarters in Switzerland—Disetronic in Burgdorf and Roche in Basel. Roche also has Roche Diabetes Care facilities in Mannheim, Germany; Indianapolis, Indiana; and Ponce, Puerto Rico.Click Here To View Or Post Comments