PLAINSBORO, N.J., Sept. 11, 2017 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART), a global leader in medical technology, today announced that it has signed a definitive agreement to sell certain neurosurgery assets to Natus Medical for $47.5 million. The divestiture is contingent on the consummation of Integra’s proposed acquisition of Codman Neurosurgery from Johnson & Johnson.
As part of this divestiture, Integra will sell the global Camino® ICP monitoring product line, including its San Diego manufacturing facility, to Natus Medical. The divestiture package also includes certain assets and the U.S. rights relating to Integra’s fixed pressure shunts, as well as U.S. rights to Codman’s DURAFORM®, standard EVD catheters and CSF collection systems.
"This agreement is an important step toward the completion of Integra’s acquisition of Codman Neurosurgery,” said Peter Arduini, president and chief executive officer, Integra LifeSciences. "We remain committed to ensuring a smooth and orderly transition for our customers and employees.”
Integra is divesting these assets in connection with the review by the Federal Trade Commission of Integra’s proposed acquisition of Johnson & Johnson’s Codman Neurosurgery assets. Both the divestiture and the pending acquisition of Codman Neurosurgery remain subject to final regulatory approvals and satisfaction of other customary closing conditions. Both transactions are expected to close in October 2017 after securing regulatory clearance.
Expected Financial Impact of the Divestiture
The neurosurgery product lines associated with these divestitures generated approximately $50 million of revenue in 2016.
Integra is providing a preliminary estimate for a fourth quarter 2017 revenue contribution of approximately $60 million to $65 million from the planned acquisition of Codman Neurosurgery, net of the divestitures announced today, assuming a closing in October 2017. This estimate reflects some initial disruption resulting from the acquisition as well as the phasing of revenue resulting from the planned transition in certain countries outside the U.S. For the full year 2018, Integra expects Codman Neurosurgery to contribute between $290 million and $300 million in revenue, net of the divestitures announced today.
Integra continues to expect Codman Neurosurgery’s accretive contribution to adjusted earnings per share to be at least $0.22 in 2018. For the full year 2017, Integra expects minimal contribution from Codman Neurosurgery to adjusted earnings per share, as expenses that have been and are being incurred to prepare for post-closing readiness offset most of the fourth quarter accretion.
Integra LifeSciences Holdings Corporation, a world leader in medical technology, is dedicated to limiting uncertainty for clinicians, so they can concentrate on providing the best patient care. Integra offers innovative solutions, including leading plastic and regenerative technologies, in specialty surgical solutions, orthopedics and tissue technologies. For more information, please visit www.integralife.com.