Symmetry Medical (SMA) Announces Acquisition of Codman & Shurtleff, Inc. for $165 Million
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Symmetry Medical Inc. (NYSE: SMA) announced today that it has entered into a definitive asset purchase agreement to acquire the surgical instruments business of Codman & Shurtleff, Inc., a Johnson & Johnson company. Codman's line of surgical instruments will be integrated with Symmetry's current hospital direct business, Specialty Surgical Instrumentation ("SSi"), creating a new business segment with more than $100 million in combined annual sales in the $1 billion worldwide market for general surgical instruments. The combined hospital direct general surgical instruments business will be re-named Symmetry Surgical and will be based in Nashville, TN.
Under terms of the Agreement, Symmetry will acquire the surgical instruments product portfolio and associated assets of Codman for $165 million in cash. Codman will provide transitional services to Symmetry Surgical for a period of time following the close of the transaction, including serving as master distributor outside the U.S. and providing certain administrative support. Symmetry intends to finance the acquisition through an amendment to its Senior Secured Credit Facility and the issuance of $65 million of senior subordinated notes. The transaction will be structured as an asset purchase resulting in significant future tax benefits related to the acquisition of assets. The transaction is expected to close by the end of 2011, subject to customary closing conditions and any necessary governmental approvals.
Under terms of the Agreement, Symmetry will acquire the surgical instruments product portfolio and associated assets of Codman for $165 million in cash. Codman will provide transitional services to Symmetry Surgical for a period of time following the close of the transaction, including serving as master distributor outside the U.S. and providing certain administrative support. Symmetry intends to finance the acquisition through an amendment to its Senior Secured Credit Facility and the issuance of $65 million of senior subordinated notes. The transaction will be structured as an asset purchase resulting in significant future tax benefits related to the acquisition of assets. The transaction is expected to close by the end of 2011, subject to customary closing conditions and any necessary governmental approvals.
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