Princeton-based medical technology company Integra LifeSciences Holdings Corp. said it is selling its Extremity Orthopedics business to British device maker Smith+Nephew for $240 million in cash.
The transaction includes Integra’s upper- and lower-extremity orthopedics product portfolio, including products for ankle and shoulder arthroplasty and hands and wrists.
“Smith+Nephew’s strong focus in orthopedics will enable the business to expand its reach and scale, while allowing the team to thrive in a new environment,” Integra CEO and President Peter Arduini said in a prepared statement. “This divestiture will increase our focus on Integra’s portfolio of market-leading products in neurosurgery, surgical instrumentation and regenerative medicine, and move us closer to achieving our long-term growth and profitability targets.”
As part of the deal, Integra will pay $41.5 million to the Consortium of Focused Orthopedists LLC under the terms of certain product development agreements tied to shoulder arthroplasty. It will use the remaining net proceeds as part of its current capital allocation strategy, potentially including debt reduction and reinvestment.
“We are extremely proud of our Extremity Orthopedics colleagues and what we have accomplished together,” Robert T. Davis Jr., Integra’s executive vice president and president of orthopedics and tissue technologies, said in a statement. “The team’s strong expertise and clinical focus on upper and lower extremities are valuable additions to Smith+Newphew’s portfolio of orthopedics devices and create an exciting opportunity for the Integra Extremity Orthopedics team.”
The deal is expected to close around the end of the year, pending customary approvals and conditions.
Piper Sandler & Co. is serving as Integra’s financial adviser, and Morgan, Lewis & Bockius LLP is acting as legal adviser.
