Wright Medical (NSDQ:WMGI) said the $80 million buyout of French orthopedic implant maker Biotech International it announced last month is on the books and could push its full-year sales to the higher end of its guidance.
The deal included a $55 million up-front cash payment and another $20 million worth of WMGI shares. Another $5 million is due to be paid out in milestones pegged to sales during 2014 and 2015, according to a press release.
The deal for Biotech International, originally announced Oct. 16, also called for the French firm to spin out its dental business. At the time Wright said it expects the deal to be neutral to adjusted EBIDTA in 2014 and accretive after that.
Arlington, Tenn.-based Wright said last week that it expects the buyout to push its sales to the high end of its full-year forecast of $237 million to $240 million and immaterial to adjusted losses per share of -55¢ to -59¢.
Earlier this month Wright posted a $130 million net loss on sales of $57.6 million during the 3 months ended Sept. 30, representing a 2,353% increase in losses on sales growth of 13.2% compared with Q3 2012. But the bulk of the Q3 2013 losses came from write-offs, including a $137.9 million non-cash charge on the write-down of BioMimetic Therapeutics and its troubled Augment bone graft, which Wright bought in November 2012 for $190 million in cash plus another $190 million in potential milestones. Wright also took an $11.2 million transition charge during the just-completed quarter from the $290 million sale of its knee and hip business to Hong Kong-based MicroPort Scientific (HK:0853) in June.