Exactech (EXAC) Sells Spine Assets, Announces Restructuring Charges

With the goals of increasing productivity, enhancing profitability of its worldwide business, and strengthening its focus on core competencies, Exactech, Inc., (Nasdaq: EXAC), a developer and producer of bone and joint restoration products for extremities, hip, knee and spine, has announced the restructuring of its Spine and Biologics business segment including the divestiture of its spine products business and restructuring charges related to international operations. The divestiture was executed through a spine asset sale today to ChoiceSpine, a private enterprise headquartered in Knoxville, TN. Terms of the transaction were not released.

Exactech CEO David Petty said, “For nearly a decade, Exactech has driven innovations in spinal surgery and we are pleased to have made meaningful contributions to patient care. We are confident the transfer of these products to ChoiceSpine will provide a continued focus on improving patient care for that population. This divestiture will allow us to sharpen our focus on investments in the core extremities and large joint segments of our business.”

According to Martin Altshuler, who co-founded ChoiceSpine with Rick Henson, “The additional technologies that Exactech has access to, combined with our expanding portfolio, allows us to further solidify our company as a premier, full-line spinal fusion provider in the U.S., with further growth opportunities in select international markets,” said Altshuler.

“We’re now in a position to dive deeper into our growth strategy by adding and introducing new distribution and surgeon users to our current and future technologies that we plan to launch over the next few months,” added Henson.

Exactech stated that the restructuring initiative and losses on the impairment of Spine and Biologics assets, including goodwill and spine assets sold, will result in a pre-tax charge to 2016 earnings in the range of $15-17 million. Looking ahead, the company expects 2017 revenue to be in the range of $264 - $272 million and earnings per share to be in the range of $1.24 to $1.32.

Earnings for 2016 will be released on Tuesday, February 21, 2017 before market open, and additional restructuring details will be reviewed during the company’s 2016 year-end earnings call on Tuesday, February 21, 2017 at 10AM ET.

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