Integra LifeSciences snaps up TEI for $312M in cash

Integra LifeSciences ($IART) will buy all outstanding shares of TEI Biosciences and TEI Medical for $312 million in a cash transaction that will give the surgical instrument provider an expanded presence in reconstructive surgery and wound care product lines.

The deal, which is expected to close by the end of the third quarter of 2015, provides Integra new sales avenues to wound care clinics and enhances its sales channel in both burn centers and operating rooms, the company said in a press release.

"This acquisition broadens our presence in regenerative wound care and tissue repair and represents a significant push forward toward our growth objectives for 2015 and beyond," Peter Arduini, Integra's president and CEO, said in a statement. "The addition of TEI is an important, strategic next step for both our channel and international expansion priorities. We are enthusiastic about both TEI's product development and commercial expertise, which accelerates our ability to establish an immediate presence in the diabetic foot ulcer space."

Since 2013, New Jersey-based Integra has acquired Covidien's Confluent Surgical soft tissue repair products for $235 million, as well as ear, nose and throat and laparoscopy instrumentation lines from Medtronic ($MDT) for $60 million, giving the company strategic opportunities to simplify its footprint.

Last year, the company said it would spin off its spinal implants and orthobiologics business into a new, publicly traded company to be called SeaSpine. The company said at the time it planned to focus on orthopedic and tissue technologies targeting the extremities, wound care, and specialty surgical solutions in neurosurgery and surgical instrumentation.

Earlier this year, Integra laid off 49 employees in Massachusetts as part of a cost-saving initiative.

- see the release