Integer to Acquire Oscor for $220M

Integer Holdings Corporation signed an agreement to acquire Oscor, a private medical device company headquartered in Florida that designs, develops, manufactures, and markets a variety of highly specialized implantable cardiac pacing leads, venous access systems, and diagnostic catheters. The transaction is expected to close in December, subject to customary closing conditions.
 
The $220 million purchase price was financed with debt. The acquisition structure includes a tax election that is expected to offset cash taxes by approximately $43 million over the next 15 years. Serving Integer’s current markets, Oscor broadens Integer’s product portfolio, expands its R&D capabilities, and adds low-cost manufacturing capacity. Oscor recognized $57 million sales in 2020 and historically has achieved high-single digit sales growth.
 
The company expects accretive EPS in 2022, increasing Integer’s EPS growth rate by low-single digit.
 
“Integer delivered strong year over year financial results in the third quarter and continued to aggressively execute our growth strategy,” Joseph Dziedzic, Integer’s president and CEO told the press. “We announced an agreement to acquire Oscor Inc., which adds proprietary products and technologies, complementary capabilities and low-cost manufacturing capacity to serve customers in our current markets. We also announced the construction of a new innovation and manufacturing facility in Ireland to support our customer’s growth in the fast-growing structural heart and neurovascular markets. We’re excited to welcome Oscor’s approximately 900 associates to Integer, who will bring a trusted brand with 40 years of medical device development and manufacturing combined with a complementary product offering and extensive intellectual property portfolio. We expect the acquisition to be accretive to EPS in 2022. We also completed our debt refinancing during the third quarter, which is expected to generate an increase of $0.15 to EPS on an annualized basis.”
 
“The execution of our operational strategic imperatives is generating strong earnings and cash flow, which should allow us to annually deploy $200 to $250 million of capital to systematically execute strategic acquisitions,” Dziedzic continued. “We expect these acquisitions to be incremental to our organic sales growth objective of 200 basis points above the markets we serve.”