Wright Medical (NSDQ:WMGI) said it closed on the $290 million sale of its OrthoRecon hip and knee implant business to China-based MicroPort Scientific (HK:0853).
First announced in June, the deal is aimed at tightening Wright’s focus on the orthopedic extremities and biologics market, president & CEO Robert Palmisano said in prepared remarks.
"With the divestiture of our OrthoRecon business, Wright’s transition to a high-growth, pure play global extremities and biologics company is complete. We will now be able to devote our full resources and attention towards accelerating growth opportunities in this area, including improving sales productivity, extending the global reach and penetration of our products in key international markets, pursuing targeted new business development opportunities, and improving gross margin and EBITDA. We believe this will enhance our ability to create significant shareholder value," Palmisano said.
The deal, announced last June, is expected to yield about $260 million for Wright. The hip and knee implant division brought in $263 million in 2012, representing 54.4% of its total annual sales that year. Wright said it plans to reveal more details about the transaction and its financial impact on the company during its Feb. 24 earnings conference call.
MicroPort plans to leave the OrthoRecon business in Arlington, under current president Ted Davis, re-branded as MicroPort Orthopedic.
WMGI shares were down a hair as of about 11 a.m. today, to $31.36 apiece.
