PLAINSBORO, N.J. and Pembroke, Mass., Aug. 1, 2002 (PRIMEZONE) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART) today announced that it has acquired the assets of Signature Technologies, Inc., a specialty manufacturer of titanium and stainless steel implants for the neurosurgical and spinal markets, and certain other intellectual property assets. The company, which will do business under the name Integra Signature Technologies, brings to Integra the capability to develop and manufacture metal implants, including custom cranial plates and spinal products. Michael Gambale, founder and president of Signature Technologies, will remain with Integra as the general manager of Integra Signature.
The purchase price consisted of $2.8 million in cash paid at closing, and certain other consideration to be paid upon the release of new products to be sold through the Integra NeuroSciences sales force. Integra is evaluating the allocation of the purchase price, including any potential in-process research and development charge associated with the acquired intellectual property.
The acquired product lines generated approximately $3.2 million in sales during the year ended December 31, 2001, primarily from the manufacture of cranial fixation systems for sale under a contract manufacturing agreement. Integra expects that ongoing sales from existing relationships will be approximately $2.5 million per year.
"The Signature Technologies acquisition gives us the capability to design and manufacture very high quality titanium and stainless steel implants, something that we did not have before," said Stuart M. Essig, President and Chief Executive Officer of Integra LifeSciences. "Our long-term goal is to develop and manufacture our own line of metal implants for sale through our Integra NeuroSciences sales force, while sustaining the base contract manufacturing business of the company."
Integra expects the positive operating profit impact of the acquisition to be offset by increased development and marketing spending as Integra develops its own line of metal implants to be sold by the Integra NeuroSciences sales force. The financial results of Integra Signature will be included in the Integra LifeSciences segment until Integra Signature develops and sells its own line of products through the Integra NeuroSciences sales force.
"We are very excited to become part of the Integra family," said Mr. Gambale. "Our design and manufacturing expertise will provide Integra with the resources needed to develop and launch its own line of high-quality implants. The expected increase in capacity utilization from such a launch should lead to higher gross margins and profitability for the overall business."
Integra LifeSciences Holdings Corporation has its corporate headquarters in Plainsboro, N.J., with manufacturing and research facilities located throughout the world. Integra has approximately 750 permanent employees. Please feel free to visit Integra's 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 of future sales of the acquired products under existing relationships and of potential improvements in gross margins and statements concerning Integra's ability to develop its own line of implants for sale through its sales force. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ from predicted or pro-forma results. Among other factors, there can be no assurance that the Company will be able to sustain the growth in Integra Signature's contract manufacturing business, to maintain or improve its gross margins or to develop its own line of metal implants. Further forward- looking factors include, but are not limited to, governmental approvals, market potential and resulting sales as well as potential therapeutic applications, and additional acquisitions. In addition, the economic, competitive, governmental, technological and other factors identified under the heading "Risk Factors" in the Business section of Integra's Annual Report on Form 10-K for the year ended December 31, 2001 and information contained in subsequent filings with the Securities and Exchange Commission could affect actual results.