PLAINSBORO, N.J., May 10, 2004 (PRIMEZONE) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART) today announced that it has acquired the MAYFIELD(R) Cranial Stabilization and Positioning Systems and the BUDDE(R) Halo Retractor System from Schaerer Mayfield USA, Inc. (formerly Ohio Medical Instrument Company) for approximately $20 million in cash.
"This acquisition strengthens Integra's position as the industry leader in neurosurgery and neuro trauma," said Stuart M. Essig, President and Chief Executive Officer of Integra. "It allows us to continue to broaden and strengthen the product lines offered by our well-trained and experienced sales group. The MAYFIELD(R) Cranial Positioning system is highly regarded for enhancing surgeon effectiveness and patient safety, and leads the market in intraoperative cranial stabilization. The MAYFIELD and BUDDE lines superbly compliment the Integra NeuroSciences portfolio of products."
The acquired operations include a facility located in Cincinnati, Ohio that manufactures, packages and distributes MAYFIELD and BUDDE stabilization products, as well as a broad line of related instruments and disposables used in many neurosurgical and spinal procedures. In addition, as part of the acquisition, Integra entered into a long-term license with SM USA, Inc., a wholly owned subsidiary of Schaerer Mayfield USA, Inc., for the use of the MAYFIELD name in connection with the acquired business.
The MAYFIELD and BUDDE lines include skull clamps, headrests, reusable and disposable skull pins, blades, retractor systems, and spinal implants. MAYFIELD systems are the market leader in the United States, and have been used by neurosurgeons for over thirty years.
The products, which are sold to hospitals and physicians, will be sold in the United States through the Integra NeuroSciences direct sales organization. Schaerer Mayfield's five sales and marketing employees will join Integra's growing sales and marketing teams. In international markets, Integra will sell through distributors. Schaerer Mayfield will provide certain administrative and logistics services to Integra for a period of time following the acquisition.
Integra NeuroSciences designs, manufactures and sells implants, devices and monitors used in neurosurgery, neurotrauma, and related critical care. Including its ten-person clinical education team, Integra NeuroSciences has a 120-person direct selling effort in the United States and Europe. Integra NeuroSciences also sells its products in approximately 80 countries worldwide through a network of international distributors.
The acquired business generated approximately $10.3 million in revenues for the twelve months ended December 31, 2003.
Integra expects to make additional investments in sales and marketing to integrate the MAYFIELD business and to support its growing neurosciences business. Accordingly, this acquisition, taken together with these incremental expenses, is expected to be neutral to Integra's earnings for the remainder of 2004 and accretive thereafter. Additional forward-looking information about this acquisition will be discussed on Integra's conference call following the release of our second quarter 2004 earnings on July 28, 2004.
The Walden Group, Inc. (Tarrytown, NY), representing Schaerer Mayfield USA, Inc., originated the transaction. Swiss Finance & Property Corporation advised the sellers.
Integra LifeSciences Holdings Corporation is a diversified medical technology company that develops, manufactures, and markets medical devices for use in a variety of applications. The primary applications for our products are neuro-trauma and neurosurgery, plastic and reconstructive surgery and general surgery. Integra is a leader in applying the principles of biotechnology to medical devices that improve patients' quality of life. Our corporate headquarters are in Plainsboro, New Jersey, and we have manufacturing and research facilities located throughout the world. We have approximately 1,000 employees. Please visit our website at (http://www.integra-LS.com).
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning expectations for newly acquired businesses and the expected impact of such acquisitions on Integra's future financial results. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted or expected results. Among other things, Integra's ability to successfully integrate these acquired product lines into its operations could affect the impact of this acquisition on Integra's future financial results. In addition, the economic, competitive, governmental, technological and other factors identified under the heading "Factors That May Affect Our Future Performance" included in the Business section of Integra's Annual Report on Form 10-K for the year ended December 31, 2003 and information contained in subsequent filings with the Securities and Exchange Commission could affect actual results.