Baxter International will acquire Synovis Life Technologies, a provider of biological and mechanical products for soft tissue repair used in a variety of surgical procedures for. The $260 million acquisition ($325 million in equity value) is intended to expand the portfolio of Baxter’s regenerative medicine and biosurgery franchise, which includes a number of devices and biological products for hemostasis, tissue sealing and adherence. The Synovis board has unanimously approved the transaction. Synovis posted approximately $70 million in sales in 2010. The transaction is expected to close in 1Q12.

Synovis develops, manufactures and markets medical devices used primarily in surgical procedures for soft tissue repair. These products are used in a variety of surgical procedures, including obesity surgery, patching the lining of the brain, vessels, and cardiac defects, hernia repair, and vascular surgery. The Synovis portfolio also includes products used in microsurgery for joining small diameter vessels during autologous tissue breast reconstruction, sealing small blood vessels, as well as head, neck and hand procedures. Its newest business area is orthopedic and wound management products, with applications ranging from the repair of rotator cuff and other tendon injuries to advanced wound management. These products are primarily used by reconstructive, orthopedic, sports medicine, podiatric, and vascular surgeons.

“The medical device business that Synovis has built, and its technical capabilities to develop and manufacture surgical products, is highly complementary to Baxter’s existing offering of BioSurgery products,” said Ludwig Hantson, president of Baxter’s BioScience business. “The combined business will offer surgeons in the United States and around the world a more complete line of innovative tools used to treat patients.”

“We are enthusiastic about this transaction not only because it is beneficial to our shareholders and employees,” said Richard Kramp, president and chief executive officer of Synovis, “but also because the combination of Baxter’s and Synovis’ product portfolios will greatly expand the combined entity’s presence in the exciting and expanding soft tissue repair market, benefiting patients worldwide.”