- The acquisition will become part of Integra’s Codman Specialty Surgical (CSS) division. The ear, nose and throat (ENT)
category is a key area of strategic interest and highly complementary to the neurosurgery segment. - Provides a unique opportunity to build scale and capture a leadership position in the attractive ENT device segment with
Acclarent’s established commercial scale, strong brand recognition, differentiated portfolio, and robust innovation
pipeline. - Generates shareholder value; transaction expected to be accretive to Integra’s long-range plan.
PRINCETON, N.J., Dec. 13, 2023 (GLOBE NEWSWIRE) — Integra LifeSciences Holdings Corporation (Nasdaq: IART), a global leader in medical
technology, announced that it has entered into a definitive agreement to acquire Acclarent, Inc. from Ethicon, Inc., a Johnson & Johnson
MedTech company for $275 million in cash at closing, subject to customary purchase price adjustments, and an additional $5 million upon the
achievement of certain regulatory milestones. Acclarent is an innovator and market leader in ENT procedures and upon closing, Integra will be one of
the leading providers of ENT products and technologies.
“This acquisition presents Integra with a rare opportunity to become a key player in the ENT segment. Acclarent’s culture of pioneering technologies
aligns with Integra’s legacy of innovation to transform care and restore patients’ lives,” said Jan De Witte, president and chief executive officer of
Integra LifeSciences. “We are looking forward to welcoming the Acclarent employees to the Integra team. Together, we can make a profound impact
on the future of ENT and neurosurgery.”
The U.S. ENT specialty devices market is growing at 5-6% and will add approximately $1 billion to the CSS global total addressable market. The
Acclarent portfolio includes its groundbreaking balloon technologies for sinus dilation and eustachian tube dilation as well as surgical navigation
systems.
Acclarent is headquartered in Irvine, California, and derives its revenues from U.S. product sales, which generated about $110 million in 2022 and
gross margins in line with Integra’s company average. The company maintains R&D facilities in Irvine and Haifa, Israel, and uses third-party
manufacturers.
“The ENT segment is an anatomical adjacency to neurosurgery. For example, this acquisition will provide opportunities for ENT and neurosurgeons to
closely collaborate on tumor care using skull base approaches,” said Mike McBreen, president of the CSS division. “Acclarent’s strong commercial
capabilities, R&D expertise, advanced portfolio and deep clinical knowledge will be important assets to Integra, allowing us to deliver future innovation
not only within ENT, but also across our other CSS technology platforms.”
Integra currently participates in the ENT category with its MicroFrance® line of ENT instruments.
Expected Financial Impact of the Transaction
Integra expects to provide detailed guidance regarding the financial impacts of this transaction upon closing.
The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by the second quarter of 2024. Following the
close, transition services, including transition manufacturing services, will be provided for up to four years.
Conference Call
Integra will discuss the acquisition of Acclarent at a conference call on December 13, 2023, at 8:30 a.m. EST Management will also reference a
presentation, which will be available on the Investor Relations section of Integra’s Website at www.integralife.com, under events & presentations. This
call will contain forward-looking statements and other material information.
A live webcast will be available on the Investors section of the Company’s website at investor.integralife.com. For those planning to participate on the
call, register here to receive dial-in details and an individual pin. While not required, it is recommended to join 10 minutes prior to the event’s start. A
webcast replay of the conference call will be available on the Investors section of the Company’s website following the call.
About Integra
At Integra LifeSciences, we are driven by our purpose of restoring patients’ lives. We innovate treatment pathways to advance patient outcomes and
set new standards of surgical, neurologic, and regenerative care. We offer a comprehensive portfolio of high quality, leadership brands that include
AmnioExcel®, Aurora®, Bactiseal®, BioD™, CerebroFlo®, CereLink® Certas® Plus, Codman®, CUSA®, Cytal®, DuraGen®, DuraSeal®, DuraSorb®,
Gentrix®, ICP Express®, Integra®, Licox®, MAYFIELD®, MediHoney®, MicroFrance®, MicroMatrix®, NeuraGen®, NeuraWrap™, PriMatrix®,
SurgiMend®, TCC-EZ® and VersaTru®. For the latest news and information about Integra and its products, please visit www.integralife.com.
In 2023, the M&A market for healthcare companies continues to build on STRATEGIC opportunities in the current market. The strategic corporate buyers and private equity investors remain committed to acquiring strong businesses that are well prepared for a transaction. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering prime valuations and options for management.
Do you know the current market value of your business? We do! We are here to help you plan, prepare, explore and succeed in executing your strategic options.
Contact Paragon Ventures for more information.
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