Medtronic Sells ENT and Laparoscopy Instrumentation Lines to Integra LifeSciences
Integra LifeSciences said Wednesday it will acquire Medtronic’s MicroFrance and Xomed manual ENT and laparoscopy instrumentation lines for $60 million in cash. The deal gives Integra a portfolio of roughly 4,000 instruments, plus Medtronic’s manufacturing facility in St. Aubin le Monial, France.
The additional product lines will expand Integra’s instruments business outside the U.S. According to Medtronic’s recent annual report, sales of the acquired products generated $30 million in revenue, two-thirds of which were generated overseas.
Lawrence Biegelsen, with Wells Fargo Securities, said the acquisition is “consistent with IART’s recently stated strategy focusing on areas adjacent to existing segments,” such as ENT. The move “significantly strengthens [Integra’s] small instrument footprint,” he added.
Despite the sale, ENT will continue to be a significant part of Medtronic’s business, spokeswoman Natalie St. Denis told Device Daily Bulletin. However, instead of producing manual instrumentation, the company will focus on novel therapies and innovative powered surgical, navigation and nerve monitoring technologies for ENT, she said.
The transaction is set close in the fourth quarter of this year, and full integration is expected to be completed by the second half of 2015, Integra said. — Kellen Owings
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