Medical device outsource manufacturer Integer Holdings recently announced the sale of its advanced surgical and orthopedics business lines to MedPlast. Expected to close in the third quarter of 2018, the deal will bring Integer $600 million in cash.
For MedPlast, the acquisition is the latest action in an aggressive growth strategy. The addition of Integer’s divisions serving the surgical industry is the third major move in the past year, following purchases of Coastal Life Technologies and the device manufacturing services arm of Vention Medical, both in 2017.
“MedPlast is incredibly excited about the addition of Integer’s AS&O capabilities to our existing platform,” Brian King, CEO of MedPlast, said in a statement. “This acquisition will further broaden our offerings and strengthen our ability to provide our customers with innovative solutions to meet their challenging needs.”
The advanced surgical and orthopedics divisions of Integer produce a wide array of devices, including imaging scopes, anchor systems, and joint replacement implants and instruments.
Integer plans to use the proceeds of the sale to pay down debt. The company is expected to focus on remaining lines dedicated to cardiac care moving forward.
Once regulatory hurdles are cleared and the deal is finalized, successful incorporation of Integer’s assets is projected to double the MedPlast’s size.