Integra LifeSciences Holdings Corporation IART agreed to acquire Acclarent Inc. from Ethicon Inc, a Johnson & Johnson JNJ MedTech company, for $275 million in cash, and an additional $5 million upon the achievement of certain regulatory milestones.
Acclarent offers medical devices for ENT procedures.
The acquisition will become part of Integra's Codman Specialty Surgical (CSS) division.
The ear, nose, and throat (ENT) category is a key area of strategic interest and highly complementary to the neurosurgery segment.
"This acquisition presents Integra with a rare opportunity to become a key player in the ENT segment," said Jan De Witte, president and chief executive officer of Integra LifeSciences.
The U.S. ENT specialty devices market is growing at 5-6% and will add approximately $1 billion to the CSS global total addressable market.
The Acclarent portfolio includes balloon technologies for sinus dilation, eustachian tube dilation, and surgical navigation systems.
Acclarent generated about $110 million in 2022, and gross margins aligned with Integra's company average.
The company maintains R&D facilities in Irvine and Haifa, Israel, and uses third-party manufacturers.
Integra currently participates in the ENT category with its MicroFrance line of ENT instruments.
The transaction is expected to close by the second quarter of 2024 and be accretive to Integra's long-range plan.
Following the close, transition services, including the transition manufacturing services, will be provided for up to four years.
In its Q3 earnings release, the company had a total liquidity of approximately $1.48 billion, including $273.7 million in cash and the remainder available under its revolving credit facility.
Price Action: IART shares are trading lower by 0.49% at $40.72 on the last check Wednesday.
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