A Pfizer sign hangs on the outside of their headquarters in New York City.
The new drug is for a rare cancer. Photograph by Mario Tama—Getty Images

ICU Medical Acquires Pfizer’s Infusion Therapy Business

Oct 06, 2016

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.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions