Bloomington, Ind. — Cook Medical announced this morning it has signed a letter of intent with Astorg, a leading private equity firm with an extensive and successful track record in global healthcare investments, to purchase Cook’s Reproductive Health business (“Cook ART”). This sale, which includes the in vitro fertilization (IVF) and assisted reproductive technology (ART) products, is another step toward fulfilling Cook’s vision for the future of the company.
Cook has been involved in the Reproductive Health space for more than 30 years, developing and launching products for in vitro fertilization and advanced reproductive therapies. Astorg, which has deep experience in investing in MedTech across both manufacturing and product businesses with a focus on growth and innovation, intends to acquire and simultaneously combine the Cook ART portfolio with Hamilton Thorne, a leading provider of precision instruments, consumables, software, and services to the ART research and the cell biology space. Through combining Cook ART and Hamilton Thorne, Astorg expects to create a leading ART provider with a comprehensive portfolio of high-quality, innovative, and reliable equipment and consumables to better serve doctors, embryologists, researchers, and patients.
“Cook is focused on our vision to deliver a continuous stream of innovative new products and services to address unmet customer needs. Part of achieving that business strategy has included reviewing our product portfolio and identifying what product lines are the best fit for Cook moving forward and which might have more opportunity to grow or thrive elsewhere,” said DJ Sirota, senior vice president of Cook Medical’s MedSurg division. “Astorg has exciting plans to build an IVF/ART manufacturing hub at our facility in Vandergrift, PA, creating a core location for manufacturing operations for Cook ART products. The expertise and skill of our Reproductive Health commercial and manufacturing teams will be critical to this transaction, which reflects the value our employees have to this business, its customers, and patients around the world.”
Transaction details:
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- The proposed transaction is subject to applicable local consultation obligations and regulatory review globally before it can be finalized. The transaction is expected to close in the fall of 2024.
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- The 93 Reproductive Health commercial employees include sales, product management, training, and marketing, will receive employment offers from, or (where applicable under local law) automatically transfer to, the newly combined company as soon as the transactions close.
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- This purchase includes the Cook Vandergrift, Pennsylvania manufacturing site. After the transaction closes, there will be a three-year transition period during which Cook will continue to provide manufacturing services at Cook Vandergrift. After that period, all of Cook Vandergrift’s 209 employees will transfer to the combined company.
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- The proceeds from this sale will be reinvested back into Cook Medical’s strategic plan.
About Cook Medical
Since 1963, Cook Medical has worked closely with physicians to develop technologies that eliminate the need for open surgery. Today we invent, manufacture and deliver a unique portfolio of medical devices to the healthcare systems of the world. Serving patients is a privilege, and we demand the highest standards of quality, ethics and service. We have remained family owned so that we have the freedom to focus on what we care about: patients, our employees and our communities.
Find out more at CookMedical.com and for the latest news, follow us on Twitter, Facebook and LinkedIn.
About Astorg
Astorg is a leading pan-European private equity firm with over €22 billion of assets under management and an extensive track record in global healthcare investments. Astorg works with entrepreneurs and management teams to acquire market leading global companies headquartered in Europe or the US, providing them with the strategic guidance, governance and capital they need to achieve their growth goals. Enjoying a distinct entrepreneurial culture, a long-term shareholder perspective and a lean decision-making body, Astorg has valuable industry expertise in healthcare, software, technology, business services and technology-based industrial companies. Headquartered in Luxembourg, Astorg has offices in London, Paris, New York, Frankfurt, and Milan.
For more information about Astorg: https://www.astorg.com/. Follow Astorg on LinkedIn.
The last several years have brought significant change to Cook. To ensure that we are positioned to be successful in this new world, our global leadership teams have implemented a new vision and strategic plan that were informed by extensive feedback from our customers and employees. After a time of internal transformation, we’re focused on our future, and we believe there are great things to come.
We are privately owned, which means we can look at the world our own way and do what we feel passionate about.
What are we passionate about? That’s simple: Making unique, quality medical devices and connecting with people to improve lives on both sides of the device; that is patients and employees. Cook was founded on inventing, manufacturing, and delivering medical devices that give healthcare professionals what they need to get their patients back to living.
Our customers have a high expectation that their suppliers are going to innovate on a regular basis. We are focused on not only bringing new products to market but also keeping our existing products relevant to a changing healthcare landscape. We also recognize it’s not just about great products but understanding customer needs and meeting those consistently.
Central to our focus on innovation is our belief in the importance of using our business to help people and communities thrive. We understand that our ongoing success will come from creating inclusive, supportive, and healthy environments where we can prosper together.
We are proud of our history of innovative firsts and the impact we have on the lives of patients and in communities, and we are focused on increasing this impact around the globe.
Our vision is to get back to what we were founded on, delivering a continuous stream of innovative new products and services to address unmet customer needs. Reaching this vision requires careful planning, a lot of hard work, and strategic choices including a full review of our product portfolio to ensure strategic fit for the future. Our future will focus on Cook’s unique approach to Invention, Connection, People and Community.
Invention: Innovation that benefits patients is what drives us, and it always has. We connect with and listen to healthcare professionals to identify unmet needs and use our expertise to imagine new solutions. This innovative spirit and a relentless focus drives everyone in Cook towards the shared goal of getting patients back to living.
Donna’s Story: When Donna was eight months pregnant, her leg suddenly became swollen and sore. Hear her experience getting emergency treatment with an innovative Cook product that got her back to living her life as a busy mom.
Connection: We believe two-way understanding is vital for advancing patient care. We value the relationships that built our company, from those that help us design the future of healthcare to those that deliver the best patient care every day. We know that the future lies in creating a customer-centric environment through listening and understanding. Whether in person, virtually or through on-demand content, we’re here whenever and however you need us to continue to strengthen the connections we have.
Vizient award: Cook has been making changes. Vizient noticed. This award demonstrates how Cook’s deep connections helped us understand and respond to our customers’ needs for transparency and innovation in our supply chain.
People: Our people are our greatest asset and are at the heart of everything we do. Bill Cook used to say, “If you take care of the company, the company will take care of you.” We are determined to create an inclusive and supportive environment that allows everyone to reach their full potential within Cook. We provide resources and benefits to help our employees achieve their personal and professional goals while actively working to remove any barriers that stand in their way.
Austin’s story: Austin earned both a bachelor’s degree and an MBA through the MyCookPathway education program–at no cost to him.
Community: If our communities are not healthy, we are not healthy. Companies play a vital role in building strong, healthy, and sustainable communities for the future. We can be a successful business while using our time, resources, and expertise to help solve the problems that are holding communities back–what we call doing good business while doing good in the world. We know this looks different in communities across the globe, but we are committed to making an impact everywhere we operate in our unique Cook way.
Anna’s story: Anna, a Stone Belt client, has autism and some vision impairments, but she doesn’t let those challenges stop her. Anna makes medical devices for Cook Medical through a unique partnership between Cook Medical and Stone Belt to provide those with differing abilities the chance at meaningful work.
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The email below, along with a video from our president and an FAQ document, was sent to all global Cook Medical employees on Monday, May 15 at 1pm EST.
Memo header: Company announcement: A difficult step for our strategic success
To: All Cook Medical employees
From: Pete Yonkman
The last several years have brought significant change to our customers, our supply chain, and the way we work. To ensure that we are positioned to be successful in this new world, our global leadership teams have implemented a new five-year vision and strategic plan that were informed by extensive feedback from our customers, employees, and leadership teams.
Today we are announcing the most difficult decision we have had to make in support of our strategy. We will be implementing a reduction in the size of our global workforce by approximately 500 people or about 4% of our total employees. This is a very hard choice, and not one that we have made without significant thought. Steps like this are especially difficult because they impact the lives of people we have come to respect as colleagues and friends. But it is a decision that we are convinced is critical to achieving our long-term success and our vision for who we want to be as an organization.
It is important to note that no hourly manufacturing employees or hourly employees in distribution centers will be impacted. Demand for our products continues to grow and we want to ensure we have the capacity to meet it.
Why we’re taking this action
Our vision for the future is to lead the industry by relentlessly delivering new products and services to address unmet customer needs and underserved patients. Reaching this vision will require careful planning, strategic choices and a lot of hard work. That’s why our mid-range plan is so important—it maps a clear pathway to reach our goals.
The first few years of the mid-range plan have a significant focus on our disciplines of operational and financial excellence. An early focus on these two areas will ensure we’re able to invest significantly in the next phases of our product leadership strategy.
Next steps
We acknowledge that there is no perfect way to communicate this decision in a global, hybrid work environment. Please know that we put thoughtful consideration into every step of the process, keeping the needs of impacted employees at the center of our efforts. We have also worked to provide best-in-class transition services, severance and support for people who are impacted by this decision.
If you are an impacted employee in AMER, you will receive an email between 8:00am and 9:00am EST tomorrow morning letting you know you are impacted and outlining next steps for a conversation with an assigned leader and HR. We want to make sure that you are in a comfortable, private location for these conversations. We are asking all hybrid employees and onsite employees who are capable of working from home to do so for the remainder of the week.
All employees in each country outside the US will receive country-specific information from senior leadership and HR about next steps as quickly as is possible. The process for sharing will take into account local laws and regulations, and our commitment to all employees around the world is to make this transition as smooth as possible.
Please note that a relatively small group of leaders were responsible for the planning and execution of this announcement—your direct manager may or may not be aware of the details and next steps.
Thank you
To those who are directly impacted by this decision: Thank you for your dedication and contributions to Cook. You’ve helped to improve the lives of patients across the world. We appreciate everything you have done for Cook and we are committed to supporting you through this transition to help you in your next step.
Pete Yonkman
President
Cook Group and Cook Medical
Bloomington, Ind. — Cook Medical announced this morning it has signed a letter of intent with Astorg, a leading private equity firm with an extensive and successful track record in global healthcare investments, to purchase Cook’s Reproductive Health business (“Cook ART”). This sale, which includes the in vitro fertilization (IVF) and assisted reproductive technology (ART) products, is another step toward fulfilling Cook’s vision for the future of the company.
