text: Advanced Medical buying IVAC Medical . SAN DIEGO 1996-08-26 Advanced Medical Inc. said Monday it will buy IVAC Medical Systems Inc. , a former Eli Lilly & Co . unit , for about $ 400 million in cash , creating one of the world 's largest makers of intravenous infusion therapy products . Under the agreement , IVAC and Advanced Medical 's wholly owned subsidiary , IMED Corp. , will merge to form a new company that will develop and manufacture infusion pumps that regulate the amount of intravenous fluid being administered to a patient , as well as proprietary disposable products . The combined company will have estimated revenues of $ 353 million . Advanced Medical , through IMED , is already one of the nation 's largest developers and manufacturers of intravenous infusion pumps and proprietary disposable products . It has sales in 38 foreign countries . San Diego-based IVAC is a major provider of infusion systems and related technologies to the health-care industry . It has manufacturing plants in San Diego ; Creedmoor , N.C. ; Hampshire , England ; and Tijuana , Mexico , and distributes its prodcuts in more than 120 countries . Eli Lilly sold IVAC on Dec. 31 , 1994 to DLJ Merchant Banking Partners LP , River Medical Inc. and other investors . Advanced Medical said it expects to take an unspecified one-time charge to pay for the merger . It did not say when the charge would be taken . " The addition of IVAC is expected to contribute to financial results in the full second quarter of 1997 , " the companies said . The merger will add to both companies ' historical leadership in infusion therapy and technology-based drug delivery devices , they said . In 1968 , IVAC introduced the world 's first infusion therapy monitoring device . A year later IVAC improved its system with the addition of an IV pump that regulated the flow of liquids through positive pressure . IMED introduced the world 's first volumetric infusion pump in 1974 . IMED had profits of $ 1.7 million , or 6 cents per fully diluted common share , on $ 53.9 million in revenues in the first half of 1996 . Excluding the effect of a one-time restructuring charge of $ 17.4 million , IVAC had net income of $ 4.2 million on net sales of $ 112.8 million for the 1996 first half . Advanced Medical reported profits of $ 8.4 million on sales of $ 29.2 million in the quarter ended June 30 . William J. Mercer , IVAC president and chief executive officer , will become the president and CEO of Advanced Medical . He led the transition of IVAC to a privately held company and was previously senior vice president at Mallinckrodt Group Inc . Joseph Kuhn , Advanced Medical and IMED president , will become the new company 's executive vice president and chief financial officer . The deal is expected to close by the first quarter of 1997 , subject to regulatory approval . It has already been approved by both companies ' boards .