Integra LifeSciences To Buy Medtronic's MicroFrance And Xomed Manual ENT

(RTTNews) - Integra LifeSciences Holdings Corp. (IART) said that it agreed to acquire Medtronic Inc.'s (MDT) MicroFrance and Xomed manual ENT and laparoscopy instrumentation lines for approximately $60 million in cash.

Integra expects the transaction to close, subject to customary closing requirements, in the fourth quarter of 2014.

The MicroFrance business, which includes Xomed's manual ENT instruments, designs, manufactures and sells reusable handheld instruments to ear, nose and throat or "ENT" and laparoscopy surgical specialists.

As per the terms of the agreement, Integra will acquire a portfolio of approximately 4,000 MicroFrance and Xomed manual ENT and laparoscopic surgical instruments, as well as the St. Aubin le Monial, France manufacturing facility. Integra plans to fund this transaction with cash held outside the U.S.

The addition of the MicroFrance business will expand Integra's Instruments presence outside the US. In the most recent annual reporting period, sales from the products being acquired totaled approximately $30 million, two-thirds of which were generated outside the U.S.

Integra expects to record about $27 million to $30 million in revenue and approximately 10 cents of adjusted EPS in calendar 2015 from this acquisition. The earnings accretion should rise after the first year once certain sales transitions are complete. The Company expects the acquisition to contribute less than $5 million in revenue and be neutral to earnings in the fourth quarter of 2014. The transition and integration is expected to be completed by the second half of 2015.