Integra LifeSciences (NSDQ:IART) said today that it closed its $312 million acquisition of TEI Biosciences and sister company TEI Medical, expanding its footprint in reconstructive surgery and regenerative wound care.
The deal brings TEI’s PriMatrix dermal repair scaffold and a 125-member sales force under the Integra umbrella, that Plainsboro, N.J.-based company said. TEI is based in Waltham, Mass.
“We are enthusiastic about the strategic fit of these two organizations, and the positive impact TEI has on both top and bottom-line metrics,” Integra president & CEO Peter Arduini said in prepared remarks. “With this acquisition, we have a significant opportunity to build our platform and fuel a robust pipeline of regenerative products to accelerate Integra’s overall growth.”
“The combined organization will offer surgeons a leading regenerative technology platform for indications in soft tissue reconstruction and wound repair,” added orthopedics & tissue technologies president Mark Augusti. “In addition to TEI’s complementary call points in the wound care clinic and operating room, TEI’s products provide surgeons with different strength and handling characteristics.”
When it announced the deal last month, Integra said TEI put up sales of roughly $63.5 million last year. The company said it expects TEI’s sales growth to hit the high single digits in its 1st year under the Integra umbrella. Gross margin was about 80%, which is comparable to Integra’s regenerative technology product portfolio, and EBITDA margin was about 25%.
“Strategically, the acquisition of TEI advances our plans to be a leader in regenerative technology, accelerates our entry into the diabetic foot ulcer market, expands our call point in wound care and tissue repair, and is accretive to our financial objectives,” CFO Glenn Coleman said today.
Integra also said it paid for the deal using a $310 million draw from its senior secured revolving credit line, taking its parent company’s borrowings on the line to $746.9 million.