Integra LifeSciences Holdings Corporation announced that the company has agreed to acquire the shares of Miltex, Inc. for approximately $101 million in cash, subject to certain adjustments.
Miltex, based in York, Pennsylvania, is a leading provider of surgical and dental hand instruments to alternate site facilities, which includes physician and dental offices and ambulatory surgery care sectors. Its distribution network and service management team is recognized for providing the industry's highest levels of customer service. Miltex generated revenues of $62 million and operating EBITDA of $13 million for the year ending December 31, 2005.
"We are excited to bring Miltex into the Integra family. It will be an excellent strategic fit with our instrument business and will enhance our cash flow and profitability. Miltex will also provide us with a broader platform on which to grow our business, as it participates in the alternate site, dental and veterinary markets," said Stuart M. Essig, Integra's president and chief executive officer. "Miltex has more than fifty years of continuous service through its distributor network and is already well positioned in each of these markets," Essig added.
Miltex has an experienced senior management team with a long track record in the surgical instrument business. After the closing of the acquisition, which Integra anticipates to be in the second quarter, the management of Miltex will join the leadership team at Integra. The company name will remain unchanged.
T. Robert Perrett, president of Miltex, said "Integra will be a good fit with our business. Integra has its own excellent surgical instrument business for the hospital markets and will offer us additional knowledge and resources to develop new and innovative products and to provide our customers with unparalleled service. These capabilities will afford Miltex the opportunity to continue its company mission of 'Redefining Excellence' and provide the ultimate level of service to the healthcare providers who utilize our products."
Miltex sells the Miltex, Meisterhand, Vantage, Moyco, Union Broach, and Thompson products in over 65 countries, using a network of independent distributors. Integra will acquire Miltex's manufacturing and distribution facility in York, Pennsylvania, which employs approximately 200 employees. Miltex also operates a leased facility in Tuttlingen, Germany, where Miltex's staff coordinates design, production and delivery of instruments. After closing, Miltex will continue to manufacture and ship its products from York, Pennsylvania.
Completion of the transaction is subject to customary closing conditions, regulatory approvals and expiration of the requisite waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, as amended.
This acquisition is expected to be neutral to Integra's earnings for the remainder of 2006, and accretive to Integra's earnings thereafter. Integra expects to provide detailed guidance regarding the financial aspects of the transaction, including the impact of purchase accounting, and its expected impact on Integra's future financial results on its first quarter earnings conference call scheduled for May 8, 2006.
Miltex is a portfolio company of American Securities Capital Partners, L.P., a private equity firm in New York that pursues investments in partnership with management teams in companies with leading market positions servicing attractive industries.