Integra LifeSciences (NSDQ:IART) said today that it closed its $60 million acquisition of Medtronic‘s (NYSE:MDT) MicroFrance and Xomed manual ENT and laparoscopy instrument lines.
The deal includes a plant in St. Aubin le Monial, France, where the MicroFrance business makes the Xomed line. Integra said it will end up with roughly 4,000 MicroFrance and Xomed manual ENT and laparoscopic surgical instruments once the deal closes, expected during the 4th quarter.
The acquired businesses brought in $30 million during Medtronic’s fiscal 2013 year, with ⅔ of that coming from outside the U.S., according to a press release. Integra said it expects the deal to result in the addition of $27 million to $30 million to its top line and about 10¢ in adjusted earnings per share next year. Earnings accretion is expected to grow after the 1st year, Integra said last month, "once certain sales transitions are complete."
During the 4th quarter the acquisition should add less than $5 million in sales and nothing to earnings, Integra said. The company is financing the deal with cash held outside the U.S., according to the release.
"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," Integra CFO Glenn Coleman said in a statement.