Rochester Medical to acquire certain assets of Coloplast, Mentor Medical for more than $16 million

By Lisa Kerner

Erie, Pa., May 22 - Rochester Medical Corp. entered into an agreement with Coloplast A/S, Coloplast Ltd. (a subsidiary of Coloplast), Mentor Medical Ltd. and Rochester Medical Ltd. (a newly formed subsidiary) in which Rochester Medical will acquire certain assets of Coloplast and Mentor related to sales of male external catheters in the United Kingdom.

According to an 8-K filing, these assets include Clear Advantage, Freedom, Freedom Plus and Transfix brands of male external catheters and Mentor's U.K. Dispensing Appliance Contractor License and its offices and warehouse in Lancing, England.

Rochester Medical will pay a total of $14.6 million for the acquired assets ($9.3 million at closing and $5.3 million over five years) as well as purchase approximately $478,000 of inventory.

On May 17, Rochester Medical also entered into a private label distribution agreement to supply silicone male external catheters to Coloplast for sale under Coloplast's brands worldwide, not including the United Kingdom. At the same time, Coloplast will supply Rochester Medical with latex male external catheters for sale in the United Kingdom under the newly acquired Freedom and Freedom Plus brands.

Additionally, Rochester Medical entered into an asset purchase agreement with Mentor to acquire certain operating assets of Mentor's Anoka, Minn., silicone male external catheters manufacturing facility for approximately $1.6 million, with a six-month lease-back arrangement.

Mentor will convey to Rochester Medical all intellectual property exclusively related to the manufacturing and sale of silicone male external catheters at the Anoka facility. Existing arbitration between the two companies will be dismissed.

Located in Stewartville, Minn., Rochester Medical develops and markets urological and urinary continence products.

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