Plainsboro, New Jersey / November 3, 2014 – Integra LifeSciences Holdings Corporation (NASDAQ: IART) today announced that it plans to spin off its Spine business to Integra shareholders on a tax-free basis. The spin-off will create a new publicly traded company called SeaSpine focused
on developing, marketing and selling spine hardware and orthobiologics. Integra will continue to focus on providing specialty surgical solutions, orthopedics and tissue technologies to surgeons. The portfolio realignment is part of a larger transformation strategy, which began in 2012 and centers on optimizing the business and accelerating growth. Both companies will continue to be leaders in providing innovative regenerative technology solutions in their respective fields.
“These strategic changes create a much stronger platform for organic growth and execution, and we believe both companies will grow faster separately than together,” said Peter Arduini, Integra’s President and Chief Executive Officer. “Moving forward, Integra will have a simpler, more focused structure from which to operate, which should improve our ability to achieve our longer-term growth and margin improvement objectives. Further, we believe these moves create exciting opportunities for our shareholders and both organizations,” added Mr. Arduini.
Spin-off of the Spine Business Creates Shareholder Value and Faster Revenue Growth
Following a strategic review by Integra’s Board of Directors, Integra believes a separation will:
- Provide both companies with a faster top-line growth profile;
- Allow the new SeaSpine, a stand-alone spine hardware and orthobiologics company, to invest more in top-line growth initiatives, such as sales, marketing and R&D, and to access the capital markets;
- Accelerate Integra’s operating margin expansion plans; and
- Unlock equity value for Integra’s shareholders.
- Integra expects in 2015 to operate in three global business areas, which will become two business areas after giving effect to the spin-off transaction: Orthopedic and Tissue Technologies, focused on extremities and wound care;Specialty Surgical Solutions, focused on neurosurgery and instruments with the ability to expand these strong platforms and more effectively invest in growth; and Spine (ultimately to become independent), focused on spinal hardware and orthobiologics.
- Each business will have a leading portfolio of regenerative technology and a strong, balanced pipeline of organic and inorganic opportunities for growth.