Pfizer has agreed to sell its Hospira Infusion Systems (HIS) business to ICU Medical for around $1bn.

Under the deal, ICU Medical will pay $600m in cash, in addition to issuing around $400m shares from its common stock.

The acquired infusion therapy business adds IV pumps, solutions and devices to ICU Medical, enabling it to become a pure-play infusion therapy company with estimated pro forma combined revenues of about $1.45bn based on trailing last one year fiscal results.

The combined company will include a complete IV therapy product portfolio ranging from solutions to pumps, as well as non-dedicated infusion sets.

Subject to customary closing conditions, the deal is expected to complete in the first quarter of 2017.

Once the deal concludes, Pfizer will acquire 16.6% stake in ICU Medical. 

Pfizer Essential Health group president John Young said: “We are pleased that Hospira Infusion Systems is combining with ICU Medical, and we believe the combined company will be well positioned in the marketplace to deliver value to customers through its strong product portfolio and the expertise of colleagues from both companies.”

ICU Medical CEO Vivek Jain said: “The combination of these two businesses is the natural evolution of a productive relationship that began more than 20 years ago when Hospira began integrating ICU Medical’s needlefree technology into their infusion offering globally.

“By acquiring the Hospira Infusion Systems business, currently our largest single customer, we create a pure-play infusion business with the focus and scale to compete globally, eliminate our single customer concentration issue, and have a significant value creation opportunity as a much larger company.”

Image: Pfizer world headquarters in New York City. Photo: courtesy of Norbert Nagel, Mörfelden-Walldorf, Germany.