Greatbatch to buy out Lake Region Medical for $1.7B

August 27, 2015 By Brad Perriello Leave a Comment

Greatbatch (NYSE:GB) said today that it closed the $1.7 billion cash-and-stock acquisition of Lake Region Medical.

Terms call for Frisco, Texas-based Greatbatch to pay $478 million in cash and some 5.1 million shares of stock (which closed yesterday at $49.89 per share, making that portion of the offer worth another $254.4 million). Greatbatch said it also agreed to assume $1 billion worth of Wilmington, Mass.-based Lake Region Medical’s debt.

If consummated as expected during the 4th quarter, the deal would create an OEM juggernaut in the medical device space, about a year after Lake Region merged with Accellent. The buyout would leave Greatbatch stockholders with about 83.4% of the combined company and Lake Region Medical shareholders with the remaining 16.6%, the companies said.

“The combination of Greatbatch and Lake Region Medical brings together 2 highly complementary organizations that can provide a new level of industry leading capabilities and services to OEM customers while building value for shareholders,” Greatbatch president & CEO Thomas Hook said in prepared remarks. “Through this transformative deal, we are going to be at the forefront of innovating technologies and products that help change the face of healthcare, providing our customers with a distinct advantage as they bring complete systems and solutions to market. In turn, our customers will be able to accelerate patient access to life enhancing therapies.”

“I am very proud of the Lake Region Medical team and what they have accomplished over many years,” added Lake Region chairman & CEO Donald Spence. “Today marks the start of an important new chapter for the company and I am confident the combination of Lake Region Medical and Greatbatch will form an even stronger entity with unmatched technology and manufacturing capabilities to better serve our customers into the future.”

“We expect considerable operating synergies resulting in sustained profitable growth, as well as double-digit adjusted cash EPS growth,” Greatbatch CFO Michael Dinkins said.

The companies posted combined revenues of about $1.5 billion last year. Greatbatch said it expects the deal to add to its earnings per share at a double-digit clip next year, with net synergies worth $25 million of operating profits. That figure is expected to rise to $60 million in 2018, the company said.

With more than 30 speakers, 25 panels and 4 tracks, you can't miss DeviceTalks Minnesota

On June 4-5, DeviceTalks Minnesota is taking over the Twin Cities medtech industry with one of the most anticipated conferences of the spring.

Join leaders from 3M, Abbott, Bigfoot Biomedical, Boston Scientific, Cardionomic, CMF Solutions, Cyient, Google Mayo Clinic, Medical Alley, Medtronic, NxThera, Opus College, Relievant Medsystems, University of Minnesota, Star Tribune, Smith & Nephew, Spry Health, Zimmer Biomet and many more when you register today.

Use the code "DTWeb" to save 15% on the cost of registration.

REGISTER TODAY

ProVerum Medical closes $4.2M investment round
ProVerum Medical recently announced that it has closed a $4.2 million seed investment with Atlantic Bridge University Fund leading the investment round. Dublin-based ProVerum Medical, a startup company from Trinity College Dublin, received a number of investments from Irish and American angel investors like HBAN Medtech Syndicate, Irrus Investments, Boole and Xenium Capital. The $4.2 […]
Emerson launches new Branson welding workstations
Emerson recently announced that it has launched its modular, custom engineered Branson welding workstations to help make the deployment of clean, secure and ergonomic production areas easier. The modular workstations are customizable and feature a height-adjustable, anodized-aluminum worktable and an ergonomic platform that weld-system operators can comfortably work on while standing or sitting. The worktable […]
How 3D printed cells on the skin could enable wound healing
Researchers at the University of Minnesota are 3D printing electronics and cells directly on the skin that could create new methods for wound healing and enable biological agent detection. The Minnesota researchers used a customized, low-cost 3D printer to print electronics on a human hand. They’ve also successfully printed biological cells on a sin wound of […]
MW Industries acquires medical-component maker LaVezzi Precision
MW Industries, a provider of highly engineered springs, specialty fasteners, machined parts, and other precision components, has acquired LaVezzi Precision Inc. — manufacturer of precision-machined components used by the medical-device industry. Located in Bloomingdale, Ill., LaVezzi was founded more than 100 years ago as a manufacturer of components for motion-picture projectors. The company reinvented itself in… […]
Razorleaf opens first international division
Razorleaf (Stow, Ohio) announced that it has opened its first division outside of the U.S. in Northampton, U.K. The company’s new Razorleaf Europe will provide a single delivery and support service to customers in Europe. “We’ve already done projects in Europe, and have customers with both U.S. and European presence, but as we get into […]
MedAccred adds plastic extrusion to audit criteria
MedAccred recently announced that it has added plastics extrusion to its list of audit opportunities. Companies that want accreditation from MedAccred can now audit plastics extrusion in addition to cable and harness, heat treating, plastics injection molding, printed circuit board assembly, sterilization and welding. The audit criteria is developed from leaders in the medical device […]
This augmented reality system projects medical images on the body
Augmented reality is helping doctors visualize what’s inside the body without having to pick up a scalpel, thanks to a new system from the University of Alberta. The system ProjectDR projects medical images like CT scans and MRI data directly onto a patient’s body in a way that moves with the body. “We wanted to […]
What is a left ventricular assist device and how does it work?
What is a left ventricular assist device? A left ventricle assist device (LVAD) is a mechanical pump that attaches to the left ventricle of the heart to supplement the function of the pumping chamber, according to Jodi Hutchins, a regulatory and quality consultant at Proven Process Medical Devices. The left ventricle of the heart is responsible […]
How video games could take market share from big pharma
Tracy MacNeal, Ximedica At the Biotech Showcase in January, a panel discussed how video games are replacing drug therapies in a variety of diseases. If you haven’t seen the latest technology in this space, companies like Akili are providing drug-alternative therapies to kids with ADHD and Pear Therapeutics’ software is aimed at helping people with addiction. Technologists have reached incredible heights in getting people to […]
Tomorrow is Medical Alley Day in Minnesota
Minnesota Gov. Mark Dayton has declared tomorrow as Medical Alley Day in the state — the same day the state’s Medical Alley Association is holding its annual meeting in downtown Minneapolis. The North Star State is one of three major medical device hubs in the U.S., the other two being California and Massachusetts. Dayton noted in his […]
Nelson Labs expands lab operations at Illinois facility
Nelson Labs recently announced that it has invested in expanding its operations and service capabilities at its Itasca, Ill. facility. The investment will offer upgrades to the laboratory facilities, in addition to a 10,000 sq. ft building expansion and renovated lab space. The upgrades will include a BI sterility suite to support EO sterilization validations […]