Mentor to sell urology business to Coloplast for $463 million

By Angela McDaniels

Seattle, March 27 - Mentor Corp. has received a binding offer from Coloplast AS to purchase Mentor's surgical urology and clinical and consumer health care business segments for $463 million.

Mentor agreed to negotiate with Coloplast on an exclusive basis during the irrevocable period of the offer, according to a company news release.

The transaction proposed by Coloplast would be subject to customary closing conditions, including receipt of regulatory approvals and the receipt of considered advice from French Works Councils.

Coloplast estimated that the acquisition would close by June 1 and said it plans to finance the transaction with cash and bank loan borrowings.

Mentor said it has been evaluating strategic alternatives since October for the urology business, which includes catheters, stents, implants and other devices for the treatment of incontinence and for genito-urological surgery.

Coloplast said that upon closing of the deal, the combined annualized sales of its urology and incontinence care products would increase to around $500 million and make up about 37% of the group's sales.

The acquisition would also allow Coloplast to expand its business in the U.S. market and substantially increase its U.S. sales force.

Mentor is based in Santa Barbara, Calif., and produces medical products for the aesthetics and urologic specialties health care markets.

Coloplast is a medical device company based in Humlebaek, Denmark.

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