A Pfizer sign hangs on the outside of their headquarters in New York City.
A Pfizer sign hangs on the outside of their headquarters in New York City. Photograph by Mario Tama—Getty Images

ICU Medical Acquires Pfizer’s Infusion Therapy Business

Updated: Oct 06, 2016 2:15 PM UTC

Medical device maker ICU Medical said it would buy Pfizer's global infusion therapy business, Hospira Infusion Systems, for $1 billion in cash and stock.

ICU's shares rose about 7% to $135 in light premarket trading on Thursday.

Pfizer will receive $600 million in cash and nearly $400 million in newly issued shares of ICU Medical common stock, giving the drugmaker a stake of about 16.6%.

Pfizer will also get the right to nominate one director to ICU Medical 's board as long as the company maintains a 10% stake.

The deal is expected to close in the first quarter of 2017, the companies said.

Pfizer bought Hospira for about $15 billion in February 2015 to boost its portfolio of generic injectable drugs and copies of biotech medicines.

ICU Medical 's financial advisers are Barclays and Wells Fargo Securities, while Latham & Watkins is its legal adviser.

Pfizer's financial advisers are Goldman Sachs and Guggenheim Securities. Skadden, Arps, Slate, Meagher & Flom LLP and Ropes & Gray LLP are its legal advisers.