Integer Holdings (NYSE:ITGR) plans to sell its advanced surgical and orthopedic assets to MedPlast for $600 million in a deal that will double MedPlast’s top line and bolster the balance sheet for Integer, which missed expectations with its first-quarter earnings.
Proceeds from the all-cash deal, announced yesterday and expected to close during the third quarter, are slated to be used to pay down debt, Integer president & CEO Joe Dziedzic said in prepared remarks. The deal does not include Frisco, Texas-based Integer’s portable medical line, the companies said.
“After this divestiture and paying down debt with the proceeds, we expect to be a $1.2 billion company with higher margins, increased net earnings, greater returns on invested capital, and significantly lower debt leverage. This increased financial flexibility will enable us to grow our leadership position in our cardio & vascular and cardiac & neuromodulation product lines as we partner with customers to deliver life-changing innovation,” Dziedzic said.
It’s the third buyout in two years for MedPlast, which bought Vention’s medical device manufacturing services division in March 2017 for an undisclosed amount and acquired medical device assembler Coastal Life Technologies three months later. The Tempe, Ariz.-based company said its sales will near the $1 billion mark after the deal, which will also expand its footprint in Europe.