Medical Tech Co. CooperCompanies Will Acquire Generate Life Sciences for $1.6B

CooperCompanies will expand its offerings through its proposed acquisition of Generate Life Sciences and will allow CooperCompanies to better service fertility clinics and Ob/Gyns with an expanded offering.

CooperCompanies (NYSE: COO) announced on Nov. 10 that it is set to acquire Generate Life Sciences from private equity firm GI Partners in a $1.6 billion cash deal that will help it expand its fertility and labor and delivery offerings.

According to the press release, CooperCompanies is a medical device company operating via CooperVision and CooperSurgical producing goods like contact lenses and medical devices as well as fertility and genomic products for women’s healthcare. Meanwhile, Generate Life Sciences is “a privately held leading provider of donor egg and sperm for fertility treatment, fertility cryopreservation services and newborn stem cell storage (cord blood & cord tissue).”

“As a leader in women’s healthcare, this is an important addition to our existing offerings and allows us to leverage our infrastructure and expertise, including our sales forces strong clinical reputation and educational capabilities,” Al White, President and CEO of CooperCompanies, said.

“Generate helps families around the world benefit from an industry leading suite of reproductive, stem cell, and genetic services,” Richard Jennings, CEO of Generate said in a press release. “Over the past several years, our company has transformed into a global organization supporting clients who want to create and protect healthy families. GI Partners has been instrumental in accelerating our growth in new markets and providing greater access to innovative science that promotes family wellness.”

As of September 30, Generate Life Sciences had about $250 million in trailing 12-month revenues, according to the filings. The deal is expected to be accretive to CooperCompanies’ non-GAAP earnings in the first year after closing.

The reverse triangular deal is expected to close in Q1 2022, pending customary closing conditions and regulatory approval. As part of the deal, Generate Life Sciences will become part of CooperSurgical.

Generate Life Sciences is represented by Paul Hastings LLP and CooperCompanies is represented by Latham & Watkins LLP.

Before the announcement, Cooper’s stock was at $433.63, and on the close Nov. 10 when the deal was announced the stock closed at $434.12, a week later stock closed on Nov. 17 at $408.58.

Cooper previously acquired the rights to IUD device PARAGARD from Teva Pharmaceutical in 2017 for $1.1 billion and The LifeGlobal Group in 2018 for $125 million for its IVF devices, along with Safe Obstetric Systems in 2021, which makes Fetal Pillow.