Japanese medical device firm Terumo has agreed to acquire various products owned by Abbott Laboratories and St. Jude Medical for $1.12bn.

The deal is based on an agreement in principle announced by the companies on 18 October 2016. It will allow to enhance Terumo's offerings in the interventional access device business.

The acquisition includes St. Jude Medical's Angio-Seal and FemoSeal vascular closure products and Abbott's Vado Steerable Sheath

Terumo president and CEO Yutaro Shintaku said: “The acquisition, which brings us leading vascular closure devices, will enable Terumo to provide customers with a comprehensive product offering in minimally invasive entry site management and lesion access.

“We expect that the acquisition will enhance our presence in the United States, which is the largest market for medical devices.”

The purchase is also expected to help Terumo increase the value of the acquired businesses through its existing infrastructure and capabilities. It would also help its part in contributing towards safe and efficient interventional operations.

The acquisition, which is subject to antitrust regulatory approvals, is also dependent on the completion of the proposed acquisition of St. Jude Medical by Abbott.

The Japanese company said that it would finance the acquisition amount through its cash reserves and debt.

According to Terumo, the combined annual sales of all the business it would acquire in the deal is nearly $268m.

Based in Tokyo, Terumo is a global supplier of interventional access devices that include introducer sheaths and guide wires.

In another development, Abbott said that it will terminate its proposed acquisition of Alere, global diagnostic device and service provider based in Massachusetts.

Image: St. Jude Medical headquarters in St. Paul, Minnesota. Photo: courtesy of St. Jude Medical, Inc.