29th Sep 2020 13:42
(Alliance News) - Smith & Nephew PLC on Tuesday said it will buy the Extremity Orthopaedics business of US-based Integra LifeSciences Holdings Corp for USD240 million, as part of the company's plan to invest in "higher-growth segments".
The FTSE 100-listed medical equipment manufacturing company said the buyout will strengthen its extremities business "by adding a combination of a focused sales channel, complementary shoulder replacement and upper and lower extremities portfolio, and an exciting new product pipeline".
"The portfolio is highly complementary to Smith & Nephew's existing orthopaedics offering, in particular providing entry into the shoulder replacement and foot and ankle segments," the company explained.
The business being acquired includes devices, implants, and instruments which provide for shoulder replacement as well as reconstruction of bone in the hand, wrist and elbow, and foot and ankle.
Skip Kiil, president of Global Orthopaedics at Smith & Nephew, said: "This strategic acquisition represents a significant opportunity to strengthen Smith+Nephew's position in a high-value area and allows us to offer a leading extremities portfolio to customers."
Smith & Nephew intends to finance the acquisition from existing cash and debt facilities.
Integra's Extremity Orthopaedics business recorded revenue of USD90 million in 2019 and traded at a small loss. The business is expected to deliver double-digit revenue growth and will be slightly dilutive to Smith & Nephew's trading profit in 2021 and 2022.
The acquisition is expected to close by the end of 2020.
Shares in Smith & Nephew were up 0.9% at 1,493.00 pence each in London on Tuesday afternoon. Year-to-date the stock is down 19%.
By Tapan Panchal; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Smith & Nephew