US-based medical device firm Greatbatch has signed an agreement to acquire Lake Region Medical, for around $1.73bn, allowing the firm to improve its position as OEM supplier for cardiac, neuromodulation, vascular, orthopaedics and advanced surgical markets.
Under the deal, Lake Region Medical will receive around $478m in cash and an aggregate of 5.1 million shares of common stock from Greatbatch. Lake Region Medical will also assume $1bn of Lake Region Medical net debt.
Lake Region Medical provides fully integrated outsourced manufacturing and engineering services, contract manufacturing, finished device assembly, original device development and supply chain management services.
Greatbatch president and CEO Thomas Hook said: "The combination of Greatbatch and Lake Region Medical brings together two highly complementary organizations that can provide a new level of industry leading capabilities and services to OEM customers while building value for shareholders."
The acquired business will help Greatbatch to provide products ranging from concept to point-of-care in the cardio and vascular and advanced surgical markets.
It provides products for electrophysiology, vascular access, cardiovascular, urology, oncology, orthopaedics, laparoscopy, biopsy/drug delivery, and arthroscopy.
Once the deal concludes, the combined firm will include around 9,000 individuals with revenues of about $1.5bn.
Lake Region Medical chairman and CEO Donald Spence said: "Today marks the start of an important new chapter for the company and I am confident the combination of Lake Region Medical and Greatbatch will form an even stronger entity with unmatched technology and manufacturing capabilities to better serve our customers into the future."
Greatbatch develops and manufactures critical medical device technologies for the cardiac, neuromodulation, vascular and orthopaedic markets, as well as batteries for high-end niche applications in the portable medical, energy, military, and environmental markets.
Subject to customary closing conditions, the deal is expected to be completed in the fourth quarter of this year.
Image: Greatbatch to acquire Lake Region Medical. Photo: courtesy of adamr/FreeDigitalPhotos.net.