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Integra bids $1.045 billion for J&J’s neurosurgery business

pharmafile | February 16, 2017 | News story | Sales and Marketing Codman, Integra, J&J, JJ, Johnson & Johnson 

Integra, a medical technology company, have announced that it has made a binding offer to acquire Johnson & Johnson’s Codman Neurosurgery business in an offer worth $1.045 billion in cash. The deal will bring Codman’s portfolio of devices focused upon advanced hydrocephalus, neuro-critical care and operative neurosurgery.

The deal would also see Integra take a leading position as a provider of neurosurgical products. Financially, the proposed acquisition would see Integra open up its business to international markets and be able to generate 30% more in sales. Codman brought in $370 million in revenue last year, currently forming a part of J&J’s DePuy Synthes unit. The deal does not include all of the Codman business, with Codman retaining its neurovascular and drug delivery business.

“This proposed transformational acquisition of Codman Neurosurgery creates compelling value for our shareholders, employees and patients,” said Peter Arduini, Integra’s President and Chief Executive Officer. “Its innovative portfolio and global reach will enable us to enhance our position in the neurosurgery market, while also building a global infrastructure that will benefit Integra as a whole. We look forward to welcoming the more than 600 Codman Neurosurgery employees to the Integra team.”

Integra initially foresees the initial year of integration to yield $0.22 in earnings per share, which it predicts will increase after the competition of the first year. Should the deal fail to receive approval, DePuy would receive a termination fee of $60 million. The deal, if it goes ahead, is expected to complete in the fourth quarter of this year.

Ben Hargreaves

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