Pfizer has agreed to sell its Hospira Infusion Systems business for $1 billion in cash and stock to ICU Medical, a San Clemente, California-based medical devices company. The Hospira Infusion Systems business includes intravenous (IV) pumps, solutions, and devices. Pfizer acquired the business as part of its $17 billion acquisition of Hospira in 2015.

Under the agreement, Pfizer will receive approximately $400 million in newly issued shares of ICU Medical common stock and $600 million in cash from ICU Medical subject to customary adjustment for net working capital. Upon completion of the transactin, Pfizer will own approximately 16.6% of ICU Medical. In addition, so long as Pfizer continues to hold 10% or more of ICU Medical’s common equity, it will have the right to nominate one director to the company’s board of directors in ICU Medical’s proxy materials, and Pfizer has agreed to certain restrictions on transfer of its shares for at least 18 months.

The acquisition complements ICU Medical’s existing business, giving it a complete IV therapy product portfolio, including solutions, pumps, and non-dedicated infusion sets.

The companies expect to complete the transaction in the first quarter of 2017 subject to customary closing conditions, including required regulatory approvals.

Source: Pfizer