06.30.15
Integra LifeSciences Holdings Corporation has agreed to acquire TEI Biosciences Inc. for $312 million in cash. The deal is expected to close during the third quarter of 2015.
The acquisition of TEI complements and expands Integra’s reconstructive surgery and regenerative wound care product offerings. Integra will also gain an expanded sales force, adding about 125 sales representatives and managers. The company will be able to expand into attractive adjacent markets, specifically abdominal wall repair and plastic and reconstructive surgery, with a new base of sales in these arenas.
“This acquisition broadens our presence in regenerative wound care and tissue repair and represents a significant push forward toward our growth objectives for 2015 and beyond,” said Peter Arduini, Integra’s president and CEO. “The addition of TEI is an important, strategic next step for both our channel and international expansion priorities. We are enthusiastic about both TEI’s product development and commercial expertise, which accelerates our ability to establish an immediate presence in the diabetic foot ulcer space.”
“It is an exciting time for TEI, and I am confident in Integra’s ability to grow our leading platform technology to drive broader expansion into regenerative medicine including wound care, plastic and reconstructive surgery and other soft tissue repair and reconstruction applications,” added Yiannis Monovoukas, Ph.D., chairman, president and CEO of TEI.
TEI generated revenues of approximately $63.5 million (unaudited) in 2014. Gross margin was about 80 percent, which is comparable to Integra’s regenerative technology product portfolio, and EBITDA margin was about 25 percent. Preliminarily, Integra expects the acquired revenue to increase high single digits in the first full year after closing. Integra will provide further guidance, including expectations for 2015 financial performance, when it reports second quarter financial results in late July.
“This transaction advances our strategy in wound care, meets our financial criteria, and generates high returns on our capital,” said Glenn Coleman, Integra’s corporate vice president and chief financial officer. “Upon closing, we expect this deal to be immediately accretive to our adjusted EBITDA [earnings before interest, tax, depreciation and amortization] and operating margins, and slightly accretive to our adjusted earnings per share, including the effects of any financing transactions that may close subsequent to the closing of the TEI acquisition.”
Plainsboro, N.J.-based Integra LifeSciences makes specialty surgical solutions, orthopedics and tissue technologies, and spine hardware and orthobiologics.
TEI Biosciences, based in Waltham, Mass., is focused on regenerative medicine to develop and commercialize novel biologic devices for a broad spectrum of soft tissue repair and regeneration applications.
The acquisition of TEI complements and expands Integra’s reconstructive surgery and regenerative wound care product offerings. Integra will also gain an expanded sales force, adding about 125 sales representatives and managers. The company will be able to expand into attractive adjacent markets, specifically abdominal wall repair and plastic and reconstructive surgery, with a new base of sales in these arenas.
“This acquisition broadens our presence in regenerative wound care and tissue repair and represents a significant push forward toward our growth objectives for 2015 and beyond,” said Peter Arduini, Integra’s president and CEO. “The addition of TEI is an important, strategic next step for both our channel and international expansion priorities. We are enthusiastic about both TEI’s product development and commercial expertise, which accelerates our ability to establish an immediate presence in the diabetic foot ulcer space.”
“It is an exciting time for TEI, and I am confident in Integra’s ability to grow our leading platform technology to drive broader expansion into regenerative medicine including wound care, plastic and reconstructive surgery and other soft tissue repair and reconstruction applications,” added Yiannis Monovoukas, Ph.D., chairman, president and CEO of TEI.
TEI generated revenues of approximately $63.5 million (unaudited) in 2014. Gross margin was about 80 percent, which is comparable to Integra’s regenerative technology product portfolio, and EBITDA margin was about 25 percent. Preliminarily, Integra expects the acquired revenue to increase high single digits in the first full year after closing. Integra will provide further guidance, including expectations for 2015 financial performance, when it reports second quarter financial results in late July.
“This transaction advances our strategy in wound care, meets our financial criteria, and generates high returns on our capital,” said Glenn Coleman, Integra’s corporate vice president and chief financial officer. “Upon closing, we expect this deal to be immediately accretive to our adjusted EBITDA [earnings before interest, tax, depreciation and amortization] and operating margins, and slightly accretive to our adjusted earnings per share, including the effects of any financing transactions that may close subsequent to the closing of the TEI acquisition.”
Plainsboro, N.J.-based Integra LifeSciences makes specialty surgical solutions, orthopedics and tissue technologies, and spine hardware and orthobiologics.
TEI Biosciences, based in Waltham, Mass., is focused on regenerative medicine to develop and commercialize novel biologic devices for a broad spectrum of soft tissue repair and regeneration applications.