Halyard Health (NYSE:HYH) and Owens & Minor (NYSE:OMI) said today that they closed the $710 million sale of Halyard’s surgical and infection prevention business.

The deal adds $1 billion in revenues and $80 million in earnings before interest, taxes, depreciation & amortization to Owen’s & Minor’s books annually. Halyard has said the sale speeds its move toward becoming a pure-play medical device company in the higher-margin pain management and chronic care markets.

Halyard said today that it plans to use the estimated $600 million in net proceeds to pay down debt, fund R&D and fuel mergers and acquisitions.

“The divestiture of S&IP transforms us into a focused, pure-play medical devices business with a clear playbook for solid revenue and earnings growth,” CEO Joe Woody said in prepared remarks. “The additional financial capacity will fund our dual-track growth strategy, focused on product innovation and strategic M&A and underpinned by a commitment to commercial excellence.”

“With the completion of this transaction — the largest in Owens & Minor’s history — we have achieved a key step in our strategy, which positions us for more profitable growth as we continue to transform the company,” Owens & Minor chairman, president & CEO Cody Phipps said in a press release. “The S&IP business provides a global manufacturing network, a strong pipeline of new products, and a successful track record of product development. Additionally, the S&IP business will add scale to our existing own-brand product portfolio and our global sales team, contributing to expansion of the markets we serve. We are very pleased to welcome the Halyard Health S&IP teammates and their exceptional products and capabilities to the Owens & Minor family.”

“The S&IP transaction enhances our ability to execute our strategy and pursue growth opportunities in 90 countries around the world and will further position us to achieve sustainable, profitable growth with its leading portfolio of surgical and infection prevention products and global manufacturing capabilities,” added CFO Richard Meier. “Strategically and financially attractive, the transaction gives us a highly regarded portfolio of products, while further enabling our ability to provide value for our customers. We believe this will enhance our ability to respond quickly to a changing healthcare industry by focusing on unique product solutions and value-enhancing bundles as we expand into more clinically relevant points of care.”

Annual pre-tax synergies are expected to be $13.5 million in the next 12 months and roughly $40 million over the next three years, the Richmond, Va.-based company said.