The O’Fallon, Mo.-based medical device company also said it agreed to earn-outs for Sterimedix through 2017, pegged to gross profits attributable to the Sterimedix business.
"The acquisition of Sterimedix expands the company’s operations, adding scalable operations to our established distribution footprint outside the U.S.," Synergetics president & CEO David Hable said in prepared remarks. "Sterimedix fits squarely within our strategy to identify strong ophthalmic businesses to enhance our company’s long-term revenue growth and profitability. We anticipate the acquisition will be accretive to our fiscal 2015 operating and net income."
The earnouts schedule calls for Synergetics to pay Sterimedix’s former owners 136.7% of the amount by which 2015 gross profits top £3.19 million (about $5 million) for 2015; 136.7% of the gross profit over £3.77 million ($5.9 million) the following year; and 136.7% of the excess above £4.4 million ($6.9 million) in 2017, according to a regulatory filing.
"Sterimedix’s portfolio of innovative surgical products for the ophthalmic and aesthetics markets represents a compelling fit within Synergetics’ comprehensive portfolio of proprietary products," Sterimedix managing director Ronnie McFarlane said in a statement. "We look forward to expanding our business by leveraging Synergetics’ growing sales and distribution presence in the U.K. and we expect our company to enhance Synergetics’ operations in the United Kingdom, Continental Europe and North America going forward."
In a separate release, Synergetics reported fiscal Q1 profits of $768,000, or 3¢ per share, on sales of $16.6 million for the 3 months ended Oct. 31, a -17.9% bottom-line slide on sales growth of 7.2% compared with the same period last year. Adjusted earnings per share were nil, 2¢ below expectations on Wall Street.
SURG shares closed at $3.40 apiece today, down 0.3%.