Greatbatch, Inc. recently announced that it has acquired Lake Region Medical (previously known as Accellent Inc.) pursuant to a deal valued at about $1.73 billion. Reuters reports that Greatbatch will pay $478 million in cash, issue 5.1 million shares of stock to Lake Region Medical shareholders, and assume $1 billion of Lake Region Medical’s debt.
According to The Buffalo News, Lake Region Medical is a private company and OEM manufacturer of minimally invasive medical devices in the Cardio & Vascular and Advanced Surgery markets. Lake Region Medical collaborates with the world’s leading medical device companies to help develop medical devices from concept to point-of-care.
Greatbatch states that the acquisition will create one of the world’s largest medical device OEM suppliers that serves the cardiac, neuromodulation, vascular, orthopedic, and advanced surgical markets. Greatbatch’s press release states that the newly combined entity will employ over 9,000 employees worldwide and generate annual revenues of about $1.5 billion. The combination also adds diversification and scale across product lines, customers, industries, and geography, with the combined entity being able to offer a more comprehensive portfolio to customers backed by a single point of support. According to Greatbatch, the transaction is expected to be finalized in the fourth quarter of 2015 subject to customary closing conditions and pending completion of all necessary regulatory reviews.
Greatbatch is a publicly-traded company (NYSE: GB) that describes itself as providing, developing, and manufacturing medical devices for the cardiac, neuromodulation, vascular and orthopedic markets, as well as batteries for high-end niche applications in the portable medical, energy, military, and environmental markets. According to Buffalo News, Greatbatch has its corporate headquarters in North Texas but maintains a large presence in Western New York, where it has research and production facilities staffed by 750 employees.