SAN DIEGO, Jan. 11, 2011 /PRNewswire/ -- CareFusion (NYSE: CFN), a leading, global medical device company, today announced that it has signed an agreement to sell its OnSite Services instrument management and repair business to Frazier Healthcare. Financial terms of the agreement were not disclosed.
"The decision to sell OnSite Services is in line with our strategy to optimize our portfolio of businesses as we focus our operations to profitably grow for the long term," said David Schlotterbeck, chairman and CEO of CareFusion. "While OnSite Services is an important instrument management and repair service partner to our V. Mueller® business, our core strategy within that business line is to deliver innovative products that will satisfy needs in minimally invasive surgery."
OnSite Services is an industry leader in surgical instrument repair and management services that provides repair specialists and service technicians who can perform preventative maintenance and instrument repairs at a hospital facility or in a national repair center. Under the sale agreement, OnSite Services will remain the preferred repair organization for V. Mueller and Snowden-Pencer® specialty surgical instruments.
Dennis Streppa, former general manager for OnSite Services, will serve as president and CEO of the new OnSite Services business. Frazier Healthcare Operating Partner and former Ascent CEO John Grotting will serve as chairman of the board.
"We are very excited to reunite Dennis and his former OnSite Services management team to lead the company they managed so successfully just a few years ago," said Nader Naini, general partner, Frazier Healthcare. "We look forward to supporting the OnSite Services employees as they continue to assist our customers to improve patient care while reducing costs."
Revenue from OnSite Services in fiscal year 2010 was approximately $50 million. OnSite Services includes national repair centers in Highland, Mich. and Sterling Heights, Mich., with a workforce of approximately 240 employees.
The acquisition is expected to close by April 2011, subject to customary conditions.
CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve patient care. The company develops market-leading technologies including Alaris® IV pumps, Pyxis® automated dispensing and patient identification systems, AirLife™, AVEA® and LTV® series of ventilators and respiratory products, ChloraPrep® skin prep products, MedMined™ services for infection surveillance, V. Mueller® and Snowden-Pencer® surgical instruments and NeuroCare diagnostic products. CareFusion employs more than 15,000 people across its global operations. More information may be found at www.carefusion.com.
About Frazier Healthcare
Founded in 1991, Frazier Healthcare is a leading provider of growth equity and venture capital to high growth and emerging health care service, biopharma and medical device companies. With over $1.8 billion under management across seven funds, Frazier Healthcare has invested in over 100 companies across the entire developmental spectrum. From seed stage venture investments to leveraged recapitalizations of cash generating companies, Frazier Healthcare has established itself among entrepreneurs and seasoned executives as a preferred partner to help create and grow successful health care companies.
Cautions concerning forward-looking statements
The CareFusion news release and the information contained herein contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. The matters discussed in these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. Forward-looking statements include, but are not limited to, statements about the timing of the anticipated sale, and post sale plans and intentions. The forward-looking statements contained herein are based on current expectations and assumptions and not on historical facts. There are important factors that could cause actual results to differ materially from those set forth in the forward-looking statements including the satisfaction of conditions to closing the sale. Additional factors that may affect future results are described in CareFusion's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, and Annual Report on Form 10-K for the year ended June 30, 2010. Except to the limited extent required by applicable law, CareFusion undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.