Integra LifeSciences plans to spin-off its spine business and create a standalone public company.
"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 CEO. "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."
Here are eight things to know:
1. Integra LifeSciences will spin off its spine business to Integra shareholders on a tax-free basis.
2. The spin-off will create a new publicly traded company called SeaSpine, which will be focused on developing, marketing and selling spine hardware and orthobiologics.
3. According to a strategic review by Integra's board of directors, Integra believes that the spin-off will provide both companies with a faster top-line growth profile and accelerate Integra's operating margin expansion plans.
4. SeaSpine will operate as an independent company with an estimated $140 million of trailing 12 month revenue as of Sept. 30.
5. Integra plans to name Kirt Stephenson chairman of the SeaSpine board of directors.
6. The transaction is expected to be completed within the next year.
7. The company plans to operate as two global divisions in 2015 after the spin-off transaction has been completed — Specialty Surgical Solutions and Orthopedics & Tissue Technologies.
8. Integra LifeSciences has also expanded its reach beyond spine, orthopedics and biologics. Just last week, the company completed its acquisition of MicroFrance and Xomed manual ear, nose and throat and laparoscopy instrumentation lines from Medtronic.
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