Endocare’s Purchase Widens Its Scope

Endocare Inc., an Irvine maker of surgical devices, said Thursday it will acquire closely held Timm Medical Technologies Inc. for $34.8 million in cash and stock to expand its urology business and add to its national sales division.

Endocare will pay $11 million in cash and 1.62 million shares of Endocare common stock, valued at $23.8 million at Thursday’s close, said Len Hall, a spokesman for Endocare. The stock closed at $14.69, up 72 cents, on Nasdaq.

The combined company will offer products to diagnose and treat prostate cancer, urinary incontinence, sexual dysfunction, bladder cancer and other illnesses. Endocare expects Timm to generate annual revenue of $10 million to $12 million.

Timm Medical, based in Eden Prairie, Minn., distributes urological products and devices. Its sales and marketing group, with more than 50 people, serves about 4,000 urologists. The transaction is expected to be completed in March.

Bloomberg News

The owner of Coco’s and Carrows restaurant chains, which have been operating under bankruptcy protection for the past year, has agreed to sell the Irvine restaurants for up to $38 million in cash.

Advantica Restaurant Group Inc. said in a regulatory filing that a group of bondholders plans to buy FRD Acquisition Co., an Advantica subsidiary and operator of Coco’s and Carrows. FRD filed for bankruptcy after skipping a $9.8-million payment on $167.6 million in debt securities.

If the transaction is approved by bankruptcy court, the buyers, who were not identified, would have 120 days to come up with the funds, said Advantica spokeswoman Debbie Atkins. Advantica had tried to find a buyer for Coco’s and Carrows for two years so it could focus on its Denny’s chain.

Marc Ballon