September 29, 2020 – Integra LifeSciences Holdings Corporation entered into a definitive agreement to sell its Extremity Orthopedics business to Smith+Nephew (London, UK) for $240 million in cash.
“This divestiture will increase our focus on Integra’s portfolio of market-leading products in neurosurgery, surgical instrumentation and regenerative medicine and move us closer to achieving our long-term growth and profitability targets,” said Peter Arduini, president and CEO, Integra LifeSciences.
The transaction includes the sale of Integra’s upper and lower extremity orthopedics product portfolio, including ankle and shoulder arthroplasty and hand and wrist product lines.
Under the terms of the agreement, Integra will receive $240 million in cash, subject to certain customary adjustments. In connection with the transaction, Integra will pay $41.5 million to the Consortium of Focused Orthopedists, LLC (CFO) pursuant to the terms of certain agreements between Integra and CFO relating to the development of shoulder arthroplasty products.
Integra intends to use the net proceeds in a manner consistent with its current capital allocation strategy, which may include debt reduction and/or reinvestment in both organic and inorganic opportunities.
The transaction is expected to close at or around the end of 2020, subject to the satisfaction of customary conditions including regulatory approvals and consultation with employee representative bodies.