Integra LifeSciences sets sights on acquiring J&J’s Codman Neurosurgery business: 7 insights

Plainsboro, N.J.-based Integra LifeSciences made a binding offer to acquire Johnson & Johnson’s Codman Neurosurgery business, based in Raynham, Mass.

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Here are seven insights:

 

1. Integra LifeSciences’ offered a price of $1.05 billion in cash.

 

2. The Codman Neurosurgery portfolio includes devices for hydrocephalus, neuro-critical care and operative neurosurgery.

 

3. Integra hopes to combine Codman’s neurosurgery portfolio with its tissue ablation, dural repair and cranial stabilization products to offer a comprehensive neurosurgery portfolio.

 

4. In 2016, the Codman neurosurgery products generated about $370 million in revenue.

 

5. Integra anticipates the transaction to be accretive to adjusted earnings-per-share by $0.22 at least in the first full year post-closing.

 

6. While Integra expects the Codman Neurosurgery revenue to see some disruption in the first year after acquisition, the company believes it will increase 3 percent to 6 percent in the longer term.

 

7. After the information and consultation process with the employees’ representatives in other countries concludes, Integra plans to enter into a definitive purchase and sale agreement.

 

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