Smith & Nephew to buy Integra LifeSciences' extremity orthopaedics business
Smith & Nephew has agreed to buy the extremity orthopaedics business of Integra LifeSciences for $240m.
This deal will significantly strengthen the company’s’ extremities business by adding a combination of a focused sales channel, complementary shoulder replacement and upper and lower extremities portfolio, and an “exciting” new product pipeline, Smith & Nephew said.
The business being acquired generated revenue of $90m in 2019 and traded at a small loss. It is expected to deliver double-digit revenue growth and be slightly dilutive to trading profit in 2021 and 2022, S&N said.
Skip Kiil, president of Global Orthopaedics at Smith & Nephew, said: "Integra's extremity orthopaedics business is an established global player in the rapidly growing extremities segment, including total shoulder replacement, and has a well-regarded specialised sales channel and a strong pipeline of new products.
“This strategic acquisition represents a significant opportunity to strengthen Smith & Nephew's position in a high-value area and allows us to offer a leading extremities portfolio to customers."
The acquisition is expected to complete around the end of the year.