NuVasive Inc. (NSDQ:NUVA) said it paid $4.5 million to buy 1 of its contract manufacturing partners, ANC LLC, based in Fairmont, Ohio.
The San Diego-based medical device company said ANC, a partner since 2010, is "1 of NuVasive’s significant implant suppliers."
"We are very excited to welcome ANC’s 65-member team into the NuVasive family. Over the past 3 years, we have been very impressed with ANC’s progression as a quality manufacturer and their cultural fit with NuVasive," chairman & CEO Alex Lukianov said in prepared remarks. "The facility will be designated NuVasive Manufacturing LLC, and we look forward to expanding their capacity and systems as we grow together. Bringing portions of our manufacturing in-house is a key element of our ongoing commitment to improve operating profitability as we grow toward $1 billion in revenue and beyond. With speed of innovation as a fundamental cornerstone of our success, the acquisition will reduce the time from the concept of a new idea to ultimate market introduction, enabling development and manufacturing to work seamlessly in launching our innovative solutions."
NuVasive said no debt was assumed in the deal, which is not forecast to affect earnings during fiscal 2013 but could "provide opportunities to drive profitability improvements" down the road.
Last week NuVasive reported mid-single-digit sales growth and double-digit profit growth during the 1st quarter, but lowered its full-year earnings guidance.
