Pfizer to sell Hospira Infusion System business to ICU for $1 billion

US pharma giant Pfizer (NYSE: PFE) has entered into a definitive agreement under which ICU Medical (Nasdaq: ICUI) will acquire all of its global infusion therapy business, Hospira Infusion Systems (HIS), for $1 billion in cash and stock.

The Hospira Infusion Systems business includes IV pumps, solutions and devices that, when combined with ICU Medical’s existing businesses, will create a leading pure-play infusion therapy company, with estimated pro forma combined revenues of around $1.45 billion based on trailing 12 month results as of June 2016.

Under the terms of the agreement, Pfizer will receive approximately $400 million in newly issued shares of ICU Medical common stock and $600 million in cash from ICU Medical subject to customary adjustment for net working capital.