McGAW SALE AGREEMENT CALLS FOR KENDALL TO PAY $120 MIL
McGAW SALE AGREEMENT CALLS FOR KENDALL TO PAY $120 MIL. in cash "plus transfer the assets of two Kendall subsidiaries" -- NDM and Anatros -- to American Hospital Supply, American announced Nov. 13. NDM manufactures electrodes and grounding devices used in diagnostic equipment, while Anatros manufactures infusion devices. The definitive agreement is expected to be completed by Nov. 26. American Hospital Supply has had a long-term interest in NDM. In the late 1970s, American reportedly made acquisition overtures, only to lose out to Colgate in 1978. At the time, American's distribution accounted for approximately 98% of NDM's medical sales. In other divestiture moves, American reached a definitive agreement to sell its Haemonetics division to Latham Labs, a Massachusetts firm owned in part by the current Haemonetics management. American reported that it "has also received bids to purchase its Tucson glove plant, and believes it can reach a satisfactory agreement prior to the close of the ]Baxter[ merger." The Justice Department has informed American and Baxter that if definitive agreements are in place, it will consider permitting the merger to close even if the sales of McGaw, Haemonetics and the glove plant are not yet consummated. In that event, American said, "the two companies would agree to a consent decree requiring the prompt completion of the divestitures."
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