The product lines made about $50 million in revenue last year.
As part of this divestiture, Integra will sell the global Camino ICP monitoring product line, including its San Diego manufacturing facility, to Pleasanton, California-based Natus Medical. The package also includes certain assets and the U.S. rights relating to Integra’s fixed pressure shunts, as well as U.S. rights to Codman’s DURAFORM, standard EVD catheters and CSF collection systems.
“This agreement is an important step toward the completion of Integra’s acquisition of Codman Neurosurgery,” said Integra CEO and President Peter Arduini. “We remain committed to ensuring a smooth and orderly transition for our customers and employees.”
The divestiture is connected to the Federal Trade Commission’s review of Integra’s proposed acquisition of Johnson & Johnson’s Codman Neurosurgery assets.
Both transactions are subject to final regulatory approvals and satisfaction of other customary closing conditions. They are expected to close in October.
Integra put its fourth-quarter estimate at about $60 million to $65 million from the planned acquisition of Codman Neurosurgery, assuming the October closing date.
This estimate reflects some initial disruption resulting from the acquisition as well as the phasing of revenue resulting from the planned transition in certain countries outside the U.S.
Integra expects Codman Neurosurgery to contribute between $290 million and $300 million in revenue next year, net of the announced divestitures.
Integra expects Codman Neurosurgery’s accretive contribution to adjusted earnings per share to be at least 22 cents in 2018.
Codman Neurosurgery is expected to have minimal contribution to adjusted earnings per share for this year, as expenses for post-closing preparation are expected to offset most of the fourth-quarter accretion.