Endocare to sell Timm Medical unit to Plethora for $9.5 million

By Angela McDaniels

Seattle, Jan. 13 - Endocare Inc. said it has signed a definitive agreement to sell its wholly owned subsidiary Timm Medical Technologies Inc. to Plethora Solutions Holdings plc for $8.1 million in cash and a 24-month $1.4 million convertible promissory note.

The $9.5 million transaction is expected to close by mid February.

Seven Hills Partners of San Francisco acted as Endocare's investment bank for the transaction.

"While we declassified our Timm Medical business unit as an 'asset held for sale' following the completion of our financing in March 2005, we recently received substantive expressions of interest in this business, which, upon extensive review with our board, compelled us to move forward with negotiations," Endocare chairman and chief executive officer Craig T. Davenport said in a company news release.

"We have been pleased with the performance of the Timm business unit during 2005. The divestiture will provide a significant cash infusion that will improve our balance sheet."

At the end of the third quarter of 2005, Endocare had $11.1 million in cash and cash equivalents, according to the release.

"Additionally, the sale of Timm Medical allows us to focus on our primary strategic objective, which is to become a clear leader in minimally invasive technologies for tissue and tumor ablation through cryoablation," Davenport added.

Endocare is a medical device company based in Irvine, Calif. Timm Medical Technologies is located in Minneapolis and manufactures erectile dysfunction products.

London-based Plethora Solutions Ltd. is a specialty pharmaceutical company that develops products for the treatment of urological diseases.

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