Integer (NYSE:ITGR) has completed the spinoff of its advanced surgical and orthopedics products lines to MedPlast, LLC for $600 million in cash. Announced in May, the deal will double MedPlast’s top line and bolster the balance sheet for Integer, which missed expectations with its first-quarter earnings.
MedPlast also announced that it will rebrand under the name Viant to reflect the company’s new strategic direction. “Our new name, Viant, represents our dedication to our customers and to the patients that our customers serve; and is indicative to our commitment that ‘we’re in it for life,’” said MedPlast CEO Brian King in a statement.
Integer said it will apply the proceeds of the sale of its AS&O business to reduce debt by about $550 million, which will include redeeming its 9.125% senior notes, paying off the balance of its revolving credit line and prepaying Term B loans. The company expects the divestiture will boost share prices because the lower interest expense from the debt reduction will more than offset the net income being divested, it said in a statement.
The deal does not include Frisco, Texas-based Integer’s portable medical line, the companies said previously. Integer said it will elaborate on the financial impact of the deal in its second-quarter results on Aug. 2.