By Associated Press - Tuesday, October 18, 2016

NEW YORK (AP) - St. Jude Medical Inc. and Abbott Laboratories have agreed to sell portions of their businesses to medical device maker Terumo Corp. for $1.12 billion in hopes that it will clear the way for their buyout deal.

North Chicago, Illinois-based Abbott is buying St. Paul, Minnesota-based St. Jude for $19.3 billion, but the deal faces scrutiny by antitrust regulators. The medical device makers are shedding some units and products to meet regulatory approval for the deal to close.

The sale to Japan-based Terumo includes St. Jude’s Angio-SealT and FemosealT vascular closure products and Abbott’s Vado Steerable Sheath. Abbott will retain its vascular closure products, which include the Perclose ProGlide Suture-Mediated Closure System, StarClose SE Vascular Closure System and Prostar XL Percutaneous Vascular Surgical System.

Abbott expects the St. Jude buyout to close in the fourth quarter.

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