By Ian Walker 
 

Smith & Nephew PLC said Tuesday that it is buying the Extremity Orthopedics business of Integra LifeSciences Holdings Corporation for $240 million, and that the purchase be funded from existing cash and debt.

The global medical-technology company said the portfolio being bought is highly complementary to its existing orthopedics offering, and provides entry into the shoulder replacement and foot and ankle segments.

"This strategic acquisition represents a significant opportunity to strengthen Smith+Nephew's position in a high-value area and allows us to offer a leading extremities portfolio to customers," S&N's President of Global Orthopaedics Skip Kiil said.

The business being bought generated revenue of $90 million and posted a small loss in 2019. It is expected to deliver double-digit revenue growth and be slightly dilutive to trading profit in 2021 and 2022, S&N said.

The acquisition is expected to complete around the end of this year.

Shares at 1210 GMT were down 7.50 pence, or 0.5%, at 1472 pence.

 

Write to Ian Walker at ian.walker@wsj.com

 

(END) Dow Jones Newswires

September 29, 2020 08:35 ET (12:35 GMT)

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