Integer Holdings Corp. completed the sale of its advanced surgical and orthopedics product lines to MedPlast.
Here are five details:
1. Integer sold the product lines for $600 million in cash.
2. The company will use the proceeds to reduce debt by approximately $550 million. It will redeem outstanding 9.125 percent senior notes, repay the outstanding balance of its revolving credit facility and prepay outstanding term B loans.
3. After the divestiture, Integer will have $1.2 billion in revenue, higher margins, increased earnings, greater returns on invested capital and significantly lower debt leverage, according to Integer CEO Joe Dziedzic.
4. The company said lower interest from the debt reduction will offset the net income being divested and free cash flow won't significantly change.
5. Details on the divestiture's financial impact will be reported in 2018 second quarter financial results Aug. 2.