Medical device outsource manufacturer Integer is selling its Advanced Surgical and Orthopaedics (AS&O) product lines to services provider Medplast.
Acquisition
Medplast is acquiring the product lines for $600 million and the transaction is expected to close in the third quarter of 2018.
Joe Dziedzic, Integer’s president and chief executive officer, said: “Integer is a global leader in medical device outsourcing, with an unmatched breadth of design, development and manufacturing capabilities. 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.”
The acquisition will double MedPlast’s size to nearly $1 billion in sales and expand its global footprint and presence in Europe.
Integer’s AS&O product lines will give MedPlast a broad range of manufacturing capabilities, including machining, stamping, coating and metal forming and is expected to strengthen the company’s front-end design, development and prototyping services. The company will employ almost 6,000 staff at manufacturing facilities across Asia, Centra America, Europe and the US.
About the acquisition, MedPlast chief executive officer, Brian King said: “MedPlast is incredibly excited about the addition of Integer’s AS&O capabilities to our existing platform. This acquisition will further broaden our offerings and strengthen our ability to provide our customers with innovative solutions to meet their challenging needs. It also will provide additional scale and new growth opportunities for MedPlast. We are excited to be working with the AS&O team and look forward to collectively growing our company and continuing to deliver outstanding service to our customers.”
The acquisition comes as the third deal MedPlast has made in the past year, following its acquisition of Vention Medical’s Device Manufacturing Services business and Coastal Life Technologies.