The acquisition will enable Smith+Nephew to add a complementary shoulder replacement and upper and lower extremities, and a new product pipeline
Medical technology company Smith+Nephew has agreed to acquire extremity orthopaedics business from Integra LifeSciences for $240m.
The acquisition will allow Smith+Nephew to expand its extremities business with the addition of a focused sales channel, complementary shoulder replacement and upper and lower extremities and new product pipeline.
The extremities commercial channel is comprised of a specialised sales force and distributors in the US, Canada and Europe.
Smith+Nephew’s existing orthopaedics offerings will be complemented by the acquired portfolio, as well as enables the company to enter into shoulder replacement and foot and ankle segments.
The complete portfolio comprises devices, implants, and instruments that facilitate shoulder replacement and reconstruction of bone in the hand, wrist and elbow (upper extremity), as well as foot and ankle (lower extremity).
In addition, the extremity orthopaedics R&D products consist of a next-generation shoulder replacement system that is expected to be commercially available in 2022.
Smith+Nephew global orthopaedics president Skip Kiil 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.
Around 300 employees from the acquired business will join Smith+Nephew
Integra’s extremity orthopaedics business has facilities in Austin of Texas and Lyon, of France. It also has a surgeon training facility in the US.
The company’s extremity orthopaedics business reported revenues of $90m in 2019.
Subject to the satisfaction of customary conditions, the deal is expected to be completed at the end of 2020.
Upon completion of the deal, around 300 employees from the acquired business will join Smith+Nephew.
Integra LifeSciences extremity orthopaedics senior vice president Peter Ligotti said: “We are looking forward to joining an organisation that is committed to growing and expanding its orthopaedic product portfolio. We are excited for the opportunities ahead as we continue to advance orthopaedic innovations for our customers and improve patient outcomes.”
In January this year, Smith+Nephew acquired US-based Tusker Medical, which has developed the Tula in-office solution for tympanostomy tubes or otherwise called as ear tubes.