CryoLife Inc. (NYSE:CRY) said yesterday that it agreed to a cash-and-stock deal worth $225 million to acquire German stent graft and surgical graft maker Jotec.

The deal calls for Cryolife to pay $168.8 million in cash and the remaining $56.25 million in CRY shares, financed by a $225 million term loan and a $30 million credit revolver and cash on hand.

Jotec put up sales of roughly $48.5 million last year and $50.9 million for the 12 months ended June 30.

“We believe this acquisition will enable CryoLife to deliver sustained, high single-digit revenue growth, while also diversifying our revenues into a significantly larger addressable market. Jotec has a technologically differentiated product portfolio addressing the $2 billion global market for stent grafts used in endovascular and open repair of aortic diseases. Their advanced product portfolio has allowed them to achieve a 17% revenue [compound annual growth rate] over the past five years, significantly outpacing the growth in the overall European market,” Cryolife chairman, president & CEO Pat Mackin said in prepared remarks. “We expect the acquired portfolio to continue to post double-digit growth outside of the U.S. for at least the next five years. In addition, the acquisition will leverage our global infrastructure and accelerate our ability to go direct in Europe, and will foster considerable cross-selling opportunities between the CryoLife and Jotec product portfolios. The transaction will also drive gross margin expansion and accelerate our trajectory towards 20% or higher operating margins. We believe this will position CryoLife to deliver growth in non-GAAP EPS at a CAGR of at least 20%t over the next five years.

“We also expect the Jotec new product pipeline and R&D capabilities to drive longer-term growth beyond the five-year horizon, particularly as their most innovative products enter the U.S. market. We plan to utilize CryoLife’s clinical and regulatory expertise to gain FDA approval for these products, which we believe will allow for entry into the U.S. market,” Mackin said.

“CryoLife is ideally positioned to accelerate adoption of our products through its highly complementary and global cardiac and vascular surgery business. We are looking forward to working with CryoLife’s team to drive growth of our existing business, expand into new geographies, and accelerate our R&D initiatives in key markets such as the U.S.,” Jotec CEO Thomas Bogenschütz added.