8:06AM CryoLife to acquire Hemosphere for $17 mln in cash, plus potential revenue milestone-based payments of up to $4.5 mln (CRY) 4.92 : Co announced today that it has signed a definitive agreement to acquire Hemosphere, Inc., a privately-held medical device company that has developed and markets the HeRO (Hemodialysis Reliable Outflow) Graft. The HeRO Graft is a proprietary graft-based solution for end-stage renal disease (ESRD) hemodialysis patients with limited access options and central venous obstruction. Under terms of the agreement, CryoLife will acquire Hemosphere for $17.0 mln in cash, plus potential revenue milestone-based payments of up to $4.5 mln. CryoLife intends to use cash on hand to finance the transaction, which is expected to close in May. Hemosphere's revenues were $5.3 mln and gross margins were 65.6 percent for the full year 2011. Assuming the transaction closes in May as anticipated, the Company expects revenues of between $2.5 mln and $3.5 mln for the Hemosphere product line in 2012. The Company expects to incur between $0.09 and $0.10 per share in charges in 2012 related to the acquisition of Hemosphere, which includes non-recurring transaction and integration charges of between $0.06 and $0.08 per share, with between $0.04 and $0.05 per share of those estimated transaction and integration charges to occur during the second quarter. The Company anticipates that the transaction will be slightly dilutive to earnings to break even for 2013. The above per share charges assume a 35 percent income tax rate. However, due to the non-deductibility of certain transaction expenses, the Company expects its income tax rate in the second quarter of 2012 to be higher than 35 percen
