Integer Company News - Integer Announces First Quarter 2018 Results

Integer Holdings Corporation Reports First Quarter 2018 Results

Company News

“Integer delivered another quarter of high single digit sales growth with even stronger net income and cash flow growth, which enabled significant debt repayment during the quarter,” said Joseph Dziedzic, Integer’s president and chief executive officer. “Our current growth trajectory supports our increased sales, profit and cash flow outlook for 2018.”

“We also announced today the planned sale of our Advanced Surgical and Orthopedics product lines to MedPlast, LLC for $600 million,” continued Mr. Dziedzic. “During our strategic review last year, we identified the opportunity to unlock significant value for Integer shareholders through the divestiture of our AS&O product line to a market leader like MedPlast, LLC. The synergies from this combination include increased innovation, manufacturing capability, and scale, which is reflected in the sale price.”

“After completing the sale and paying down debt with the proceeds, we expect Integer to be a higher margin business with increased net earnings, higher returns on invested capital, debt leverage below four times, and cash flows similar to those prior to the divestiture,” concluded Mr. Dziedzic. “Looking forward, Integer has clear market leadership positions in our remaining product lines, with differentiated technology and increased financial flexibility to invest more aggressively to grow. We are now better positioned to deliver on our objectives of sales growth above the market, profit growth two times sales growth, and to earn a valuation premium.”

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