Feb 15, 2017
Integra Lifesciences, a prominent medical device maker, has announced that it will acquire the Codman Neurosurgery business of Johnson & Johnson’s (JNJ) for $1.05 billion. The Codman unit of JNJ includes a portfolio of medical devices focusing on advanced hydrocephalus, operative neurosurgery, and neuro-critical care, according to the company. During 2016, the acquired products generated approximately $370 million in revenue, the company stated.
Peter Arduini, Integra’s CEO, said in a statement: “This proposed transformational acquisition of Codman Neurosurgery creates compelling value for our shareholders, employees and patients.”
“If the offer is accepted, the proposed transaction would be expected to close in the fourth quarter of 2017, pending the successful completion of works council consultations, antitrust clearances and other customary closing requirements as applicable,” commented a spokeswoman from JNJ.
This isn’t the first deal Integra has inked in 2017. On Jan. 11, the company announced that it would buy Derma Sciences (DSCI) for $204 million.
Currently, JNJ is exploring strategic options for its diabetes care unit, which includes its Animas, LifeScan, and Calibra Medical divisions. Investors and analysts have been indicating that they believe a divestiture of these assets is the most likely outcome of the review process. The units could fetch a value of between $2 billion and $2.5 billion.