Posted on 07/2018
Integer Completes Divestiture of its Advanced Surgical and Orthopedics Product Lines
FRISCO, Texas, July 02, 2018 — Integer Holdings Corporation (“Integer”) (NYSE:ITGR) today announced that it has completed the previously announced sale of its Advanced Surgical and Orthopedics (“AS&O”) products lines to MedPlast, LLC for $600 million in cash. Integer will apply the proceeds to reduce debt by approximately $550 million, including the redemption of the Company’s outstanding 9.125% senior notes and the repayment of the outstanding balance of the Company’s revolving credit facility, with the remaining proceeds used to prepay outstanding Term B loans.
The Company expects the divestiture to be accretive to non-GAAP earnings per share as the lower interest expense from the debt reduction will more than offset the net income that is being divested. Free cash flow will remain similar to pre-divestiture levels. Integer will provide historical comparable financials, incorporate the divestiture into its fiscal year 2018 financial guidance, and provide further details on the financial impact of the divestiture when it reports its 2nd quarter results on August 2nd.
”The AS&O divestiture is one of the outcomes of our portfolio strategy that was communicated earlier this year,” said Joe Dziedzic, Integer’s Chief Executive Officer. “We believe this action has already created significant value for Integer shareholders and positions us to even more aggressively execute on our strategy. Our operational strategy, comprised of six strategic imperatives focused on Customers, Costs and Culture, is a multi-year roadmap to achieving excellence in everything we do.”
“Integer has clear leadership positions in its Cardio & Vascular, Cardiac Rhythm Management, Neuromodulation and Electrochem businesses,” continued Dziedzic. “After the AS&O divestiture Integer is a $1.2 billion revenue company with higher margins, increased earnings, greater returns on invested capital, and significantly lower debt leverage. We are executing our strategy to drive accelerated long-term growth and realize our vision of enhancing patients’ lives and earning a valuation premium for our shareholders.”