US-based medical device outsource manufacturer Integer has completed the divestiture of its Advanced Surgical and Orthopedics portfolios to medical device services provider MedPlast for $600m.
The move is part of Integer’s multi-year portfolio strategy that focuses on customers, costs and culture in order to advance its long-term growth. Integer intends to use the proceeds from the deal to minimise debt.
MedPlast and Integer signed an agreement for the transaction, which does not include Integer’s Portable Medical product range, in May this year.
Integer CEO Joe Dziedzic said: “Integer has clear leadership positions in its Cardio & Vascular, Cardiac Rhythm Management, Neuromodulation and Electrochem businesses.
“After the AS&O divestiture Integer is a $1.2bn revenue company with higher margins, increased earnings, greater returns on invested capital, and significantly lower debt leverage.”
The acquisition is expected to strengthen MedPlast’s medical device manufacturing solutions such as machining, stamping, coating and metal forming.
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The deal is expected to further bolster MedPlast’s front-end design, development and prototyping services, while boosting its sales to nearly $1bn. It additionally increases the firm’s global footprint and expands its European presence.
MedPlast CEO Brian King said: “MedPlast is incredibly excited about the addition of Integer’s AS&O capabilities to our existing platform.
“This acquisition will further broaden our offerings and strengthen our ability to provide our customers with innovative solutions to meet their challenging needs. It also will provide additional scale and new growth opportunities for MedPlast.”
According to Medplast, its manufacturing facilities in Asia, Central America, Europe and the US will provide employment for approximately 6,000 engineers, technicians and assembly workers.