Integer Holdings Corporation to Divest Non-Medical Business for $50 million
30 September 2024 - 2:00PM
Integer Holdings Corporation (NYSE: ITGR), a leading medical device
contract development and manufacturing organization (CDMO), today
announced it has entered into an agreement to divest its
Electrochem business, which focuses on non-medical applications for
the energy, military and environmental sectors, to Ultralife
Corporation (NASDAQ: ULBI). Ultralife is acquiring Electrochem for
$50 million in cash, subject to customary working capital
adjustments, and the transaction is expected to close by the end of
October.
“The divestiture of our non-medical business is another example
of Integer managing our portfolio to accomplish our strategic
financial objectives,” said Joe Dziedzic, Integer’s president &
CEO. “Following the transaction, Integer will be a pure-play
medical business with additional cash to pay down debt and execute
our inorganic growth strategy. Ultralife is an ideal buyer for
Electrochem because they are a leader in providing critical power
solutions to a variety of industries that include energy, defense,
and environmental markets.”
Going forward, Integer will report the results of its
Electrochem business, currently included in its “Non-Medical”
segment, as part of discontinued operations. This will include any
gain or loss recognized on the sale of the business. The Company
intends to use the proceeds from the sale to pay down outstanding
debt and for general corporate purposes.
In the 2024 full year guidance provided as part of our second
quarter 2024 earnings release, we assumed the following in relation
to our non-medical segment, adjusted to include $3 million of
allocated interest expense as part of discontinued operations:
- Sales of $36 million.
- GAAP operating income of $3 million.
Non-GAAP adjusted operating income of $4 million.
- Adjusted EBITDA of $5 million.
- GAAP net income of $0 million.
Non-GAAP adjusted net income of $1 million.
- GAAP diluted EPS of $0.00. Non-GAAP
adjusted EPS of $0.02.
We expect this transaction to be neutral to EPS.
Please see “Notes Regarding Non-GAAP Financial Information” and
“2024 Outlook” in our earnings release for the second quarter of
2024, dated July 25, 2024 for additional information regarding our
use of the non-GAAP financial measures set forth above.
About Integer®Integer Holdings
Corporation (NYSE:ITGR) is one of the largest medical device
contract development and manufacturing organizations (CDMO) in the
world, serving the cardiac rhythm management, neuromodulation, and
cardio and vascular markets. As a strategic partner of choice to
medical device companies and OEMs, the Company is committed to
enhancing the lives of patients worldwide by providing innovative,
high-quality products and solutions. The Company's brands include
Greatbatch Medical®, Lake Region
Medical® and Electrochem®.
Additional information is available at www.integer.net.
Forward-Looking StatementsSome of the
statements contained in this press release are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including the statements relating to the
expected timing for the closing of the divestiture of the
Electochem business, the intended use of proceeds by the Company
from the transaction, and the impact of the transaction on the
Company’s EPS. You can identify forward-looking statements by
terminology such as “may,” “will,” “should,” “could,” “expects,”
“intends,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “potential” or “continue” or variations or the negative
of these terms or other comparable terminology. These statements
are only predictions and actual events or results may differ
materially from those stated or implied by these forward-looking
statements. In evaluating these statements, you should carefully
consider a number of factors, including, but not limited to, risks
and uncertainties that arise from time to time and are described in
our earnings release, dated July 25, 2024 (filed as Exhibit 99.1 to
our Current Report on Form 8-K filed July 25, 2024), Item 1A “Risk
Factors” of our Annual Report on Form 10-K and in our other
periodic filings with the SEC. Except as may be required by
law, we assume no obligation to update forward-looking statements
in this press release, whether to reflect changed assumptions, the
occurrence of unanticipated events or changes in future operating
results, financial conditions or prospects, or otherwise.
Investor Relations:Andrew
Sennandrew.senn@integer.net763.951.8312 |
Media Relations:Kelly
Butlerkelly.butler@integer.net469.731.6617 |
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