CooperCompanies, a global powerhouse in medical device manufacturing, has terminated its planned $875 million acquisition of Cook Medical's reproductive health business following a full-phase investigation by the Federal Trade Commission (FTC). The move is being celebrated as a win for market competition.
"Following a full-phase investigation by FTC staff, CooperCompanies’ decision to abandon this proposed acquisition ensures that critical reproductive health markets remain competitive," Holly Vedova, director of the FTC's Bureau of Competition, said in a recent news release.
Headquartered in San Ramon, Calif., CooperCompanies has a distinguished reputation in the vision care sector, a February 2022 investor release from the company said. Cook Medical is celebrated for its trailblazing efforts in developing technologies that eradicate the necessity for open surgery.
On the heels of CooperCompanies' decision, Vedova lauded the termination, according to the release. She stressed the FTC's dedication to safeguarding patients from higher costs and championing the incentive to innovate. Vedova characterized the deal termination as a triumph for patients.
"This deal termination protects competition and is a win for patients," Vedova said in the FTC release.
First announced Feb. 7, 2022, the acquisition was intended to bolster CooperSurgical's international fertility footprint and diversify its medical device portfolio, the Cooper release said. The terms of the agreement, as stated in the initial release, required CooperCompanies to pay approximately $875 million. The payment was to be divided into $675 million at closing and an additional $200 million disbursed in four annual installments of $50 million each.
Al White, CooperCompanies' president and CEO, was sanguine about the prospects of the acquisition when it was announced, the release reported.
"This acquisition is an excellent strategic fit for CooperSurgical," he said in the investor release. "We're improving our international fertility footprint, especially within the Asia-Pacific region, and adding highly synergistic and respected labor and delivery devices to our ObGyn portfolio."
But amidst concerns about maintaining market competition and protecting patients from potentially increased costs, the proposed acquisition has now been terminated, the release reported. While the move marks a setback for CooperCompanies' expansion plans, the FTC is considering it a solid win for consumers.
