Greatbatch Completes Acquisition of Lake Region Medical

Greatbatch, a supplier of implants, instruments, cases and trays to orthopaedic OEMs, completed its acquisition of Lake Region Medical. Subject to shareholder approval, the merged entity will be renamed Integer Holdings. Integer will serve multiple medical markets, including orthopaedics, cardiac, neuromodulation, vascular, advanced surgical, etc.

Details of the transaction, as announced in mid-3Q15, indicate a purchase price of ~US $1.73BB in cash and stock, yielding a company with >9,000 employees and annual revenue of ~$1.5BB (includes non-orthopaedic). Of this, ORTHOWORLD estimates at least ten percent will pertain to orthopaedics, as Greatbatch orthopaedic revenue alone could exceed $160MM for 2015. Orthopaedics comprises ~20% of Greatbatch revenue, overall.

Greatbatch manufactures orthopaedic implants and instruments for large joint, spine, extremity and trauma procedures, as well as delivery systems (cases and trays) for cleaning and sterilization. Lake Region’s orthopaedic products include shaver blades/burrs, RF probes and suture anchors; a variety of components, sub-assemblies and finished devices for implantable and interventional spine applications and implants/instruments for reconstruction and fracture repair in large and small joints. Greatbatch counts the large orthopaedic device manufacturers among its customers: DePuy Synthes/Johnson & Johnson, Medtronic, Smith & Nephew, Stryker and Zimmer Biomet. Its competition includes Avalign, JunoPacific, Micropulse, Orchid, Paragon Medical and Tecomet.

Lake Region Medical was acquired by Accellent in 1Q14, supporting Accellent’s intent to grow its Cardio & Vascular business segment. That combined business continued as Lake Region, offering outsourced manufacturing and engineering services, contract manufacturing, finished device assembly, original device development and supply chain management services.

Further detail is expected when Greatbatch announces its 3Q15 revenue on Thursday, October 29.

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