News Release
Contacts:
Integra LifeSciences Holdings Corporation
John B. Henneman, III John Bostjancic
Executive Vice President Vice President, Corporate Development
Chief Administrative Officer and Investor Relations
(609) 936-2481 (609) 936-2239
jhenneman@Integra-LS.com jbostjancic@Integra-LS.com
Integra LifeSciences Closes its Acquisition of LXU Healthcare, Inc.
Plainsboro, New Jersey / May 08, 2007 / -- Integra LifeSciences Holdings
Corporation (NASDAQ: IART) announced today that it has closed its acquisition of
LXU Healthcare, Inc. (LXU) for $30.0 million, subject to certain adjustments.
LXU employs approximately 140 employees. LXU will be operated as part of
Integra's Jarit Surgical Instruments business activities.
LXU, based in West Boylston, Massachusetts, is comprised of 3 distinct
businesses:
o Luxtec - The market-leading manufacturer of fiber optic headlight
systems for the medical industry through its Luxtec(R) brand. Luxtec's
headlight systems are used by over 50,000 surgeons worldwide and are
the vision systems of choice for training in hospitals and medical
schools. A surgical headlight system consists of three main components:
a light source or generator, a flexible fiber optic cable, and a
surgical headlight. Luxtec's flagship products include the UltraLite(R)
and UltraLux(R) Xenon fiber optic surgical headlights. These ergonomic
and lightweight headlights aim a bright, white light in line with the
surgeon's visual focus providing better direct illumination of the
surgical site. The Luxtec products are manufactured in a 31,000 square
foot leased facility located in West Boylston.
o LXU Medical - A leading specialty surgical products distributor with a
technically proficient sales force calling on surgeons and key clinical
decision makers, covering 18,000 operating rooms in the southeastern,
midwestern and mid-Atlantic United States. LXU Medical is the exclusive
distributor of the Luxtec fiber optic headlight systems in these
territories.
o Bimeco - A critical care products distributor with direct sales
coverage in the southeastern US.
This acquisition offers a number of strategic benefits to Integra LifeSciences:
o The Luxtec brand of surgical headlight systems provides the Jarit sales
organization with increased exposure and growth opportunities in the
hospital and ambulatory surgery center market. Approximately 40% of
Luxtec products are used by cardiovascular surgeons, 20% by general
surgeons, 10% by neurosurgeons and 7% each by ENT and orthopedic
surgeons.
o Provides Integra with increased access to specialty surgeons and allows
us to position Jarit's growing lines of specialty surgical
instrumentation directly to the end-user. Additionally, the combination
of Luxtec light sources and Jarit(R) surgical retraction systems
provide our customers with outstanding operative-site illumination and
visibility.
o Increases Integra's global product offering and international market
presence with the addition of proprietary light source systems used
regularly by specialty surgeons around the world.
o Adds a technically proficient sales force that serves the southeastern,
midwestern and mid-Atlantic United States with specialized, distributed
medical products covering over 18,000 operating rooms.
o Increases Integra's global, market leading neurosurgery product
offering with the addition of proprietary light source systems used
regularly by neurosurgeons.
o Enhances the efficiencies of Integra's global infrastructure and
distribution network through economies of scale and cost synergies.
"This acquisition represents an excellent strategic fit for Integra
LifeSciences. It provides significant growth opportunities for the Jarit and LXU
Medical sales teams by leveraging our combined strength and exposure of leading
brand names within the surgical community ," said Stuart M. Essig, Integra's
President and Chief Executive Officer.
Luxtec sells its products in 60 countries using a network of independent
distributors in the United States and internationally. Many Luxtec distributors
already sell Jarit(R) surgical instrument products.
"The Luxtec headlight systems also strengthen Integra's product offering in
general surgery, providing an exceptional complement to the portfolio of
products already offered by our Jarit sales organization," Mr. Essig added. "We
have great respect for the LXU management team who have built the Luxtec and
specialty distribution business and look forward to joining forces as we expand
our presence into various surgical disciplines with clinically relevant products
and services."
"The Luxtec surgical headlight system is a necessary and well-regarded
product-line" adds Rob Rogowski, President of Jarit Surgical Instruments. "It
provides us with a unique entree to specialty surgeons, allowing us to highlight
Jarit's growing lines of surgical instrumentation directly to the end-user.
Also, there exists a natural opportunity to combine Luxtec light sources with
Jarit(R) surgical retraction systems to provide our customers with a
comprehensive and compatible package of operative-site illumination."
"We are delighted to join Integra and look forward to working with the Integra
team to contribute to our companies' mutual growth," said Joe Potenza, President
and Chief Executive Officer of LXU Healthcare.
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 2007 earnings
conference call scheduled for May 9, 2007.
Integra LifeSciences Holdings Corporation, a world leader in regenerative
medicine, is dedicated to improving the quality of life for patients through the
development, manufacturing, and marketing of cost-effective surgical implants
and medical instruments. Our products are used primarily in neurosurgery,
extremity reconstruction, orthopedics and general surgery to treat millions of
patients every year. Integra's headquarters are in Plainsboro, New Jersey, and
we have research and manufacturing facilities throughout the world. Please visit
our website at (http://www.Integra-LS.com).
This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include, but are not limited to, statements concerning expectations for the
strategic benefits that this acquisition will provide to Integra. Such
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from predicted or expected results. Among
other things, Integra's ability to successfully integrate the LXU business into
its own operations could affect the extent of the strategic benefits that
Integra generates from this acquisition. In addition, the economic, competitive,
governmental, technological and other factors identified under the heading "Risk
Factors" included in the Business section of Integra's Annual Report on Form
10-K for the year ended December 31, 2006 and information contained in
subsequent filings with the Securities and Exchange Commission could affect
actual results.
Source: Integra LifeSciences Holdings Corporation