The deal includes a plant in St. Aubin le Monial, France, where the MicroFrance business makes the Xomed line. Integra said it will end up with roughly 4,000 MicroFrance and Xomed manual ENT and laparoscopic surgical instruments once the deal closes, expected during the 4th quarter.
"This announcement reflects Integra’s continuing commitment to building our instruments business. The transaction provides access to R&D, service & repair and other infrastructure already in place in St. Aubin le Monial, France, which will improve our ability to service our current portfolio and to develop new products," U.S. instruments president Debbie Leonetti said in prepared remarks. "These products also align nicely with our current sales channels as well as adjacent divisions, particularly our Neurosurgery business."
The business being acquired brought in $30 million during Medtronic’s fiscal 2013 year, with ⅔ of that coming from outside the U.S., according to a press release. Integra said it expects the deal to result in an addition of $27 million to $30 million to its top line and about 10¢ in adjusted earnings per share next year. Earnings accretion is expected to grow after the 1st year, according to the release, "once certain sales transitions are complete."
During the 4th quarter the acquisition should add less than $5 million in sales and nothing to earnings, Integra said. The company is financing the deal with cash held outside the U.S., according to the release.
"We are excited about adding the MicroFrance business, which advances our strategic objectives in both our Instruments and International businesses while meeting our profitability and return goals," Integra CFO Glenn Coleman said in a statement.