Wright Medical Group, an orthopedic medical device company, has announced a definitive agreement to acquire France-based Biotech International.
As part of the transaction, Biotech International will spin off its dental business before the close.
Pursuant to the terms of the agreement, 100% of the outstanding equity shares of Biotech International will be acquired by Wright Medical on a fully diluted basis at a total offer price of approximately $80m.
The $80m transaction includes $75m payable at closing and additional $5m of cash depending on the achievement of certain revenue milestones in 2014 and 2015.
The payable $75m includes up to $55m of cash and $20m of common stock from Wright Medical.
Wright Medical is expected to significantly expand its direct sales channel in France and international distribution network with the acquisition of Biotech International.
This acquisition will also allow the company to accelerate growth opportunities in its global Extremities business.
Wright Medical president and CEO Robert Palmisano noted the acquisition of Biotech International is an excellent fit for the company’s Extremities business, enabling it to immediately expand its direct foot and ankle presence in Europe and add a base of extremity revenue that we can effectively grow on a go-forward basis.
"In addition, Biotech’s products complement our existing foot and ankle portfolio and include several specialized products that expand our extremities product offering.
"We plan to utilize Biotech’s strong direct sales channel in France and established distributor presence in emerging markets to extend the reach of our international distribution network and further accelerate growth opportunities in our global Extremities business," Palmisano added.
The company is expecting the acquisition to be finalized by the end of 2013.