Olympus, a global medical device company, said it plans to acquire Taewoong Medical, a Korean medical device maker specializing in gastroenterology and metal stents, for $370 million (about 482 billion won).

Of the total acquisition payment, Olympus will pay approximately $255.5 million upon completion of the acquisition, followed by an additional $114.5 million in the future when Taewoong achieves certain milestones. However, the company did not unveil the milestones in detail, citing contractual reasons. 

Olympus expects the acquisition process to be completed within the first half of this year.

Taewoong Medical focuses on developing and manufacturing stents for digestive organs such as the biliary tract, esophagus, large intestine, and duodenum.

Digestive stents are used to treat obstruction or narrowing of organs due to cancer or other diseases. According to Olympus, Taewoong Medical's metal stent is characterized by strong radial force and excellent flexibility.

Such features reduce the risk of restenosis because the stent adapts well to anatomical structures such as the biliary tract and esophagus, and is less likely to bend.

Notably, Olympus stressed that Taewoong's variety of high-quality stents with unique designs and technology has helped physicians select the appropriate procedure for each patient and perform the minimally invasive treatment.

The acquisition follows Olympus announcing its plans to target the gastrointestinal (GI) field as one of its key business areas in December 2021.

The addition of Taewoong Medical's medical devices to its product portfolio will enable Olympus to become a comprehensive solutions provider in the GI market, contributing to improved patient outcomes and elevating the standard of care, Olympus said.

"Olympus' Endotherapy Division is committed to providing a full portfolio of clinically differentiated technologies aimed at treating patients who suffer from GI disease, and with the acquisition of Taewoong Medical, this further demonstrates our commitment to this critical segment of our business," said Gabriela Kaynor, Global Division Head of Therapeutic Solutions Division at Olympus.

Kaynor stressed that Taewoong Medical had developed a full portfolio of GI metal stents that will immediately enhance its already robust offering of GI devices.

Shin Kyong-min, president and CEO of Taewoong Medical, also said, "Our company has a robust market presence in Korea, Japan, and Europe, and exports to 86 countries worldwide."

Moving forward together with Olympus, Taewoong Medical will focus its capabilities on providing medical professionals and patients with superior products and services through continuous investment in R&D and manufacturing technology, Shin added.