- Signs agreement to acquire 26,000-square-foot building adjacent to existing manufacturing facility for $2.7 million
- Will house company's component manufacturing operations and freeze-dried plasma commercial production as part of company's long-range growth strategy
MINNEAPOLIS, Jan. 28, 2015 (GLOBE NEWSWIRE) -- Vascular Solutions, Inc. (Nasdaq:VASC) today announced that it has entered into an agreement to acquire a 26,000-square-foot building located at 6420 Sycamore Court North in Maple Grove, Minnesota. The purchase price will be $2.7 million and funded with existing cash. The closing is expected to take place in early March, subject to customary closing conditions.
The building is located across the street from Vascular Solutions' existing manufacturing facility and headquarters building. The newly-acquired facility will be used initially for the company's component manufacturing operations, with future use planned for the commercial scale production of freeze-dried plasma which is being developed in collaboration with the United States Army. Upon closing of the acquisition, Vascular Solutions intends to occupy approximately 17,500 square feet of the building, with an existing tenant expected to continue to occupy the remaining 8,500 square feet.
In December of 2014, Vascular Solutions announced that it had completed the purchase of its principal manufacturing facility, a 79,300-square-foot building at 6464 Sycamore Court North in Maple Grove that the company had occupied under a lease since 2003. In November of 2012, Vascular Solutions acquired an adjacent building at 6401 Sycamore Count North where it currently occupies approximately 48,000 square feet on the upper two floors of the building for administrative, quality, regulatory, and R&D operations, while leasing the first floor to pre-existing tenants.
All of the facility purchases have been funded with the company's cash on hand and have not been supported by any debt or government grant. At December 31, Vascular Solutions had cash and equivalents of $36.5 million and no debt other than normal trade payables and current liabilities.
The facility acquisitions are part of Vascular Solutions' continued growth strategy, which has resulted in 11 consecutive years of double-digit sales growth driven by new product development. The company anticipates hiring an additional 60 skilled employees for its expanded Minnesota operations over the next two years, and with the new hires the company's workforce in Minnesota is expected to total over 400 and company-wide to be more than 500.
"Vascular Solutions has launched more than 80 new medical devices since 2003, and in recent years we have averaged ten new devices launched each year to serve the needs of interventional physicians and their patients," said Howard Root, Chief Executive Officer of Vascular Solutions. "The purchase of our facilities allows us to better organize and expand our R&D and manufacturing operations to sustain our pace of new product flow. We are especially excited about the continued progress with our freeze-dried plasma development program, and with the acquisition of the 6420 building we now have the footprint needed to create commercial-scale manufacturing of this valuable one-of-a-kind product to save the lives of our armed forces members on the front lines."
In addition to its Minnesota facilities, Vascular Solutions maintains an R&D and production facility for its hemostatic valve product line in Galway, Ireland.
About Vascular Solutions
Vascular Solutions, Inc. is an innovative medical device company that focuses on developing unique clinical solutions for coronary and peripheral vascular procedures. The company's product line consists of more than 80 products in three categories: catheter products, hemostat products and vein products. Vascular Solutions delivers its products to interventional cardiologists, interventional radiologists, electrophysiologists, and vein specialists through its direct U.S. sales force and international independent distributor network.
The information in this press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements include those related to the expected uses of the facility, the expected closing date of the transaction, and plans for adding employees. Our actual results could differ materially from those anticipated in these forward-looking statements. Important factors that may cause such differences include those discussed in our Annual Report on Form 10-K for the year ended December 31, 2013 and other recent filings with the Securities and Exchange Commission. The risks and uncertainties include, without limitation, risks associated with the development of new products, the need for adoption of our new products, exposure to intellectual property claims, significant variability in quarterly results, exposure to possible product liability claims, the development of new products by others, doing business in international markets, the availability of third party reimbursement, and actions by the U.S. Government.
For further information, connect to www.vasc.com.
CONTACT: Phil Nalbone, VP Vascular Solutions, Inc. email@example.com (763) 656-4371Source:Vascular Solutions, Inc.