By Ludwig Burger
FRANKFURT (Reuters) â€“ Germanyâ€™s Bayer AG has agreed to buy U.S. contraceptive devices maker Conceptus for $1.1 billion, aiming to underpin its position as the worldâ€™s largest womenâ€™s healthcare provider,
Bayer, whose shares were down 2.3 percent by 0823 GMT, will launch a public tender offer to acquire all Conceptus shares for $31.00 each in cash, in an offer agreed with Conceptusâ€™s management, Bayer said on Monday.
That is a premium of 19.7 percent over the stockâ€™s closing price on Friday and a multiple of about 30 times the adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) that Conceptus is targeting for this year.
s in global healthcare equipment and services companies on average trade at 9 times annual EBITDA, according to Thomson Reuters StarMine.
Bayerâ€™s womenâ€™s healthcare business had sales of 3.15 billion euros ($4.1 billion) last year, from products including its Yasmin contraceptive pill and Mirena intrauterine device.
â€œOur experience in the field of gynecology combined with our sales and distribution expertise will help to further develop Conceptusâ€™ business,â€ said Andreas Fibig, head of Bayer unit HealthCare Pharmaceuticals.
Conceptus, which makes inserts that are placed into the fallopian tubes as a permanent non-hormonal contraceptive, had $28.2 million in adjusted EBITDA last year on sales of $141 million.
The U.S. company has forecast 2013 adjusted EBITDA of between $34 million and $37 million on sales of between $155 million and $159 million.
Bayer Chief Executive Marijn Dekkers took the post in 2010 with a reputation for being able to handle transformational takeovers, but the Conceptus deal, expected to close by mid-year, is the latest in a line of small and medium-sized buys.
Last September Bayer agreed to buy Tevaâ€™s U.S. animal health operations for up to $145 million, following the purchase of AgraQuest, a developer of bacteria to fight plant disease, for at least $425 million.
(Editing by David Holmes)