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ICU Medical Inc ICUI

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ICU Medical Under Review on Smiths Acquisition; FVE Likely to Rise

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Narrow-moat ICU Medical announced plans to acquire narrow-moat Smiths Group’s Medical division for $2.35 billion in enterprise value in a transaction expected to close in the first half of 2022. We believe the acquisition will be substantially accretive for ICU, and shares have risen over 30% in intraday trading. At first glance, we expect to significantly raise our fair value estimate too, and we are placing ICUI under review as we rework our model to account for the acquisition.

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Company Profile

Business Description

ICU Medical is a California-based, pure-play infusion therapy company that provides consumables, systems, and services for virtually every component of the IV continuum of care. After ICU’s acquisition of Hospira Infusion Systems from Pfizer in 2017, it became one of the largest players in this concentrated industry, holding top-tier positions in its major reporting segments: infusion consumables (37% of 2020 revenue), IV solutions (31%), infusion systems (28%), and critical care (4%). The combined entity remains primarily U.S. focused, generating over 70% of its sales domestically.

Contact
951 Calle Amanecer
San Clemente, CA, 92673
T +1 949 366-2183
Sector Healthcare
Industry Medical Instruments & Supplies
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 7,900