Globus Medical, a leading musculoskeletal implant manufacturer, announced that it has acquired allograft tissue processor Transplant Technologies of Texas, (TTOT).
Based in San Antonio, TTOT is a provider of human tissue products including bone allografts, biomaterials, and soft tissue products for spine, orthopedics, sports medicine, dental, and wound care markets.
"This acquisition of TTOT will complement the Globus biologics product portfolio and represents a key step in fulfilling our strategy of building a broad business in regenerative biologics. TTOT’s products and capabilities will better position Globus in existing allograft markets while also providing a dedicated source of supply for our extensive pipeline of products utilizing human allograft tissue. We expect to continue our mission of bringing health to patients with musculoskeletal disorders through the gift of life from donors," said David Paul, Chairman and CEO of Globus Medical.
Transplant Technologies of Texas processes sterile human tissue and distributes a wide range of allograft implants including machined spine implants, demineralized bone matrix, sponge allografts, as well as traditional bone allografts.
TTOT also processes and distributes sports medicine tendons, birth tissue allografts, and dermal allografts. Globus plans to maintain and grow TTOT’s operations in Texas and maintain the existing relationships with its distribution partners. Globus also expects to leverage and grow TTOT’s product portfolio, bringing new tissue-based products to market through the Globus worldwide salesforce.
Globus anticipates TTOT to contribute approximately $2 million in additional sales and to be neutral to fully diluted earnings per share for the fourth quarter 2014. For 2015, Globus anticipates a contribution from TTOT of approximately $12 million in annual sales and a neutral impact to fully diluted earnings per share for the year.
The company will provide additional details about the transaction during its previously announced quarterly earnings conference call on October 30, 2014.