“With the completion of the acquisition of Lake Region Medical and the spin-off of Nuvectra, Greatbatch is now optimally positioned to focus on sustainable growth and profitability. We have the scale, full systems capabilities and broad product offerings that will allow us to deepen our customer partnerships and establish ourselves as the world’s leading medical device outsource manufacturer. With the integration plans off to such a productive start, we are well positioned to accelerate our strategic growth plans and provide long term benefits for our shareholders, customers and our associates. Over the past month, I have been visiting our locations and meeting with many of our major customers to share the Greatbatch story and get valuable feedback,” CEO Thomas Hook said in an SEC filing.
The company shifted its expectations for net sales, originally set at $1.47 billion, to between $1.425 billion and $1.475 billion for the full year 2016.
Adjusted EBITDA is expected to be between $320 million and $335 million, up from its originally forecasted $327 million, the company said in an SEC filing posted today.
Greatbatch set its expectations for earnings per share, which had not been previously announced, at between $3.00 and $3.35.
The news sent shares up, rising 5.26% to close at $36.64.
“I’m extremely pleased with the way the integration of Lake Region Medical is progressing. The new Greatbatch leadership team has been in place for approximately one month and is highly focused on assimilating the business and executing our strategic growth initiatives. We have a clear line of sight to deliver the targeted $25 million of integration synergies for 2016 with the primary focus on organization structures, contracts spend and infrastructure costs. Our longer term focus will be manufacturing footprint optimization, continued supply chain optimization and process improvements. Given our established track record of integrating operations, I remain confident that we will be able to exceed our long term synergy expectations. We look forward to meeting with shareholders over the next several months to further reinforce our strategic direction,” Hook said in a press release.