Integra LifeSciences has made a binding offer to acquire Johnson & Johnson’s Codman Neurosurgery business for about $1.05 billion in cash.
Codman, which reeled in about $370 million in revenue last year, is part of J&J’s DePuy Synthes group. If J&J accepts the bid, Integra will boost its neurosurgical offerings, getting its hands on surgical devices used to treat brain tumors, hydrocephalus (or the buildup of fluid in the brain) and other neurological disorders.
Codman’s "innovative portfolio and global reach will enable us to enhance our position in the neurosurgery market, while also building a global infrastructure that will benefit Integra as a whole,” said Integra CEO Peter Arduini in a statement. “We look forward to welcoming the more than 600 Codman Neurosurgery employees to the Integra team."
Integra’s neurosurgery stable includes flow-regulating valves to control the flow of cerebrospinal fluid and a dural sealant system. It has devices for tissue ablation, dural repair and cranial stabilization in its pipeline, according to the statement.
If all goes to plan, the deal should close in two steps, with the first—closure in about 24 principal countries—coming in the fourth quarter.
In 2015, the company snatched up TEI for $312 million to expand its reach in wound care and reconstructive surgery. It also markets surgical instruments and devices across a range of specialties, including pain care and burn surgery.