Minntech to Sell Cardiopulmonary Assets

Minntech Corp., a Minneapolis-based medical device maker, will sell its cardiopulmonary business to LifeStream International LLC, a newly-formed cardiopulmonary products company, for $7.2 million in cash and warrants to take a stake in the new firm.

Under the terms of the deal, Minntech will sell assets and rights related to its Biocor oxygenator and Enguard Phx cardioplegia system components to LifeStream and will receive $2.5 million in cash at closing and the other $4.7 million over the next two years.

The deal is expected to close within 90 days.

Minntech did not say how it would use the proceeds.

Minntech said it would also receive a warrant for five percent of LifeStream's outstanding equity securities and will continue to manufacture ancillary cardiosurgery products and molded plastic components of the Biocor oxygenator and Enguard PHX cardioplegia system.

LifeStream, formed by First Chicago Equity Capital, the private equity investment group of Bank One Corp. and Garrett Capital Advisors LLC, earlier said it agreed to acquire the cardiopulmonary products division of C.R. Bard Inc.

When the deals are completed, LifeStream will have revenues of about $85 million, making it the largest company solely dedicated to cardiopulmonary products, LifeStream said in a separate statement. It said roughly half of the company's revenue will come from outside the United States.