Integer (NYSE:ITGR) completed the spinoff of its advanced surgical and orthopedics products lines to MedPlast for $600 million in cash. Announced in May, the deal will double MedPlast’s top line and bolster the balance sheet for Integer, which missed expectations with its first-quarter earnings.

Integer said it will apply the proceeds to reduce debt by about $550 million, which will include redeeming its 9.125% senior notes, paying off the balance of its revolving credit line and prepaying Term B loans. The company expects the divestiture will boost share prices because the lower interest expense from the debt reduction will more than offset the net income being divested, it said in a statement.

Privately held MedPlast also announced that it will rebrand under the name Viant to reflect the company’s new strategic direction.

“The addition of Integer’s business expands our capabilities and offerings, and enables us to achieve our goal of being a full-service supplier to our customers,” said MedPlast CEO Brian King in a statement.  “Our new name, Viant, represents our dedication to our customers and to the patients that our customers serve; and is indicative to our commitment that ‘we’re in it for life.’”

In addition to rebranding as Viant, MedPlast announced that its corporate headquarters will move to Foxborough, Mass., placing it in a major medical device hub near many of its customers. Since Water Street and JLL’s investment in MedPlast in 2016, the company’s employee base has doubled to nearly 6,000 associates located across the United States, Central America, Europe, and Asia.

The deal does not include Frisco, Texas-based Integer’s portable medical line, the companies said previously. Integer said it will elaborate on the financial impact of the deal in its second-quarter results on Aug. 2.

“We believe this action has already created significant value for Integer shareholders and positions us to even more aggressively execute on our strategy,” said Integer CEO Joe Dziedzic in the statement. “Our operational strategy, comprised of six strategic imperatives focused on customers, costs and culture, is a multi-year roadmap to achieving excellence in everything we do.”

The divestiture leaves Integer a $1.2 billion company with higher margins, increased earnings, greater returns on invested capital, and significantly lower debt leverage, according to Dziedzic. ” We are executing our strategy to drive accelerated long-term growth and realize our vision of enhancing patients’ lives and earning a valuation premium for our shareholders,” he said.

It’s the third buyout in two years for privately held MedPlast, which bought Vention’s medical device manufacturing services division in March 2017 for an undisclosed amount and acquired medical device assembler Coastal Life Technologies three months later. The Tempe, Ariz.-based company has said its sales will near the $1 billion mark after the deal, which will also expand its footprint in Europe.

Integer’s stock closed yesterday at $65.80, up from $40.01 one year ago.

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