Integer buys Aran Biomedical for $131.1 million


Integer Holdings

Integer (NYSE:ITGR) announced today that it acquired Connemara Biomedical and its subsidiaries Aran Biomedical and Proxy Biomedical (collectively “Aran”).

Aran offers development and manufacturing solutions for implantable medical devices, including proprietary medical textiles, high-precision biomaterial coverings and coatings, and advanced metal and polymer braiding.

The deal to acquire Aran Biomedical is worth $131.1 million (€120 million) with up to an additional $10.9 million (€10 million) in contingent consideration based on 2022 revenue growth milestones.

Plano, Texas-based Integer said in a news release that Galway, Ireland-based Aran further increases its ability to offer complete solutions for complex delivery and therapeutic devices in high-growth cardiovascular markets, including structural heart, neurovascular, peripheral vascular and endovascular, as well as in general surgery.

Integer said Aran’s Ireland headquarters also expands its presence and proximity to customers in that region.

“The acquisition of Aran Biomedical is entirely aligned with our strategy to expand our presence in high growth markets,” Integer President and CEO Joe Dziedzic said in the release. “Aran brings subject matter expertise and highly differentiated implant technology solutions to our portfolio. Coupling these technology solutions and expertise with Integer’s leadership in delivery systems and manufacturing scale will bring an unparalleled ability to meet our customers’ needs and be their partner of choice for developing the next generation of lifesaving and life-enhancing medical devices.”

Aran Biomedical generated sales of $17 million in 2021, which represents nearly double its output from the prior year. Integer expects the transaction to be immediately accretive to its sales growth and profit margins.

Integer financed the acquisition with borrowings under its existing revolving credit facility. Aran’s 130 associates will be joining the Integer team, Dziedzic said.

“We are very excited and proud to be joining Integer, one of the largest medical device outsource manufacturers in the world,” Aran CEO Peter Mulrooney said. “Combining Aran Biomedical’s proprietary biomaterial implant technologies with Integer’s world-class delivery systems will lead to a more highly differentiated service offering to the medical device industry.”

 

€1 = $1.09205



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