Integra LifeSciences Holdings Corporation has completed the acquisition of the MicroFrance and Xomed instrument lines from Medtronic.
Back in September, Integra Lifesciences announced that it was to acquire Medtronic’s MicroFrance and Xomed manual ear, nose and throat (ENT) and laparoscopy instrumentation lines for approximately $60 million in cash.
The MicroFrance business, which includes Xomed’s manual ENT instruments, designs, manufactures and sells reusable handheld instruments to ENT and laparoscopy surgical specialists. Under the terms of the agreement, Integra will acquire a portfolio of approximately 4,000 MicroFrance and Xomed manual ENT and laparoscopic surgical instruments, as well as the St. Aubin le Monial, France manufacturing facility.
The addition of the MicroFrance business will expand Integra’s Instruments presence outside the US. In the most recent annual reporting period, sales from the products being acquired totaled approximately $30 million, two-thirds of which were generated outside the U.S.
Integra plans to fund this transaction with cash held outside the U.S., arguably a smart (and not uncommon) practice for American companies, keen to use their offshore funds for strategic acquisitions rather than face a tax burden on repatriation.
At the time of the announcement, Debbie Leonetti, Integra’s CVP, President, U.S. Instruments said; “This announcement reflects Integra’s continuing commitment to building our Instruments business. The transaction provides access to R&D, service & repair and other infrastructure already in place in St. Aubin le Monial, France, which will improve our ability to service our current portfolio and to develop new products. These products also align nicely with our current sales channels as well as adjacent divisions, particularly our Neurosurgery business.”
“The addition of the MicroFrance business advances our strategic objectives by enhancing our existing instruments portfolio and capabilities, expanding our international presence and providing potential adjacency opportunities in the Neurosurgery business,” said Glenn Coleman, Integra’s Chief Financial Officer in the completion release.
Source: Integra LifeSciences