Integer this week announced it entered into an agreement to divest its Electrochem business for $50 million.
Ultralife Corporation has agreed to buy the business, which focuses on non-medical applications for the energy, military and environmental sectors. The deal is worth $50 million in cash, subject to customary working capital adjustments. It is expected to close by the end of October.
“The divestiture of our non-medical business is another example of Integer managing our portfolio to accomplish our strategic financial objectives,” Integer CEO Joe Dziedzic said in a news release. “Following the transaction, Integer will be a pure-play medical business with additional cash to pay down debt and execute our inorganic growth strategy. Ultralife is an ideal buyer for Electrochem because they are a leader in providing critical power solutions to a variety of industries that include energy, defense, and environmental markets.”
As part of the deal, Integer will report the results of its Electrochem business as part of discontinued operations. This will include any gain or loss recognized on the sale of the business. Integer said it will use the proceeds from the sale to pay down outstanding debt and for other general corporate purposes.
The Plano, Texas–based company is one of the largest medtech contract manufacturers in the world. With nearly $1.6 billion in revenue in 2023, it came in at No. 57 in our most recent MedTech Big 100 report about the world’s largest medical device companies.
