Integra LifeSciences (IART) to Acquire U.S. Rights to Certain Tornier (TRNX) Assets
Integra LifeSciences (NASDAQ: IART) and Tornier N.V. (Nasdaq: TRNX), announced a definitive agreement under which Integra will acquire the United States rights to Tornier’s Salto Talaris and Salto XT ankle replacement products and Tornier’s Futura silastic toe replacement products, for an undisclosed cash payment. The agreement also includes an option to purchase, in the future, the rights to the Salto Talaris, Salto XT, Salto Mobile, and Futura silastic toe replacement products outside the United States.
The transaction is subject to approval by the United States Federal Trade Commission (FTC) and the closure of the pending merger of Tornier and Wright Medical Group, Inc. which, pending FTC clearance is expected to occur in the third quarter of 2015.
“This acquisition broadens our extremity product portfolio by adding commercially available products,” said Mark Augusti, President of Integra’s Orthopedics and Tissue Technologies business. “It allows us to diversify our lower extremity portfolio and accelerates our entry into the U.S. total ankle replacement segment of the foot and ankle market.”
“We are pleased with reaching this point in the divestiture process as well as with the quality of the buyer for these assets and to have completed this important step toward our pending merger with Wright,” said David Mowry, President and Chief Executive Officer of Tornier. “I want to thank Tornier employees involved in this transaction for their diligence and hard work,” Mowry said.
Financial Impact to Integra
Revenues in the United States from the acquired products were approximately $15.5 million in 2014. During 2015, Integra expects the contribution to adjusted earnings per share to be immaterial given the expected timing of closing of the transaction, normal sales transition, and expected costs associated with the integration. Integra will provide further information on the expected revenues from the transaction on their third quarter earnings call.