US-based Wright Medical Group has entered into a definitive agreement to acquire Biotech International, a French implant manufacturer, in an $80m deal.
The acquisition is expected to close in the fourth quarter of 2013 and will combine Biotech International's complementary extremity product portfolio to the company's existing foot and ankle portfolio and help Wright Medical expand its extremities product offerings.
Under the terms of the deal, Biotech will spin off its dental business before the close while Wright's common stock issued in connection with the deal will be subject to a one-year lockup.
Wright Medical president and CEO Robert Palmisano said: "The acquisition of Biotech International is an excellent fit for our Extremities business, enabling us to immediately expand our direct foot and ankle presence in Europe and add a base of extremity revenue that we can effectively grow on a go-forward basis."
The deal will also see the significant expansion of Wright Medical's direct sales channel in France and international distribution network, to further accelerate growth opportunities in Wright Medical's global Extremities business.
Under the terms of agreement, Wright Medical will pay Biotech International $55m in cash, $20m in Wright Medical stock and an additional $5m in cash depending on certain revenue benchmarks set for 2014 and 2015.
Biotech International president Bruno Thevenet and co-founder Philippe Veran said in a joint statemen: "We look forward to working with Wright to ensure a seamless transfer and the continued success of our business as part of Wright Medical."
Wright Medical Group anticipates that the deal will be neutral to adjusted EBITDA in 2014 and accretive thereafter.
According to GlobalData estimates, the orthopedic prosthetics market in the US was valued at $413m in 2012 and is expected to grow at a CAGR of 3.5% to reach $527m by 2019.