CareFusion, a global medical device company, announces that it has signed an agreement to sell its OnSite Services instrument management and repair business to Frazier Healthcare. Financial terms of the agreement were not disclosed.
"The decision to sell OnSite Services is in line with our strategy to optimize our portfolio of businesses as we focus our operations to profitably grow for the long term," said David Schlotterbeck, chairman and CEO of CareFusion. "While OnSite Services is an important instrument management and repair service partner to our V. Mueller® business, our core strategy within that business line is to deliver innovative products that will satisfy needs in minimally invasive surgery."
OnSite Services is an industry leader in surgical instrument repair and management services that provides repair specialists and service technicians who can perform preventive maintenance and instrument repairs at a hospital facility or in a national repair center. Under the sale agreement, OnSite Services will remain the preferred repair organization for V. Mueller and Snowden-Pencer® specialty surgical instruments.
Dennis Streppa, former general manager for OnSite Services, will serve as president and CEO of the new OnSite Services business. Frazier Healthcare Operating Partner and former Ascent CEO John Grotting will serve as chairman of the board.
"We are very excited to reunite Dennis and his former OnSite Services management team to lead the company they managed so successfully just a few years ago," said Nader Naini, general partner, Frazier Healthcare. "We look forward to supporting the OnSite Services employees as they continue to assist our customers to improve patient care while reducing costs."
Revenue from OnSite Services in fiscal year 2010 was approximately $50 million. OnSite Services includes national repair centers in Highland, Mich. and Sterling Heights, Mich., with a workforce of approximately 240 employees.
The acquisition is expected to close by April 2011, subject to customary conditions.
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