AUDUBON, Pa.--(BUSINESS WIRE)--Feb. 25, 2015--
Medical, Inc. (NYSE: GMED), a leading musculoskeletal implant
manufacturer, today announced that it has entered into an agreement to
acquire Branch Medical Group, Inc. (“BMG”), a third party manufacturer
of high precision medical devices. Under the terms of the agreement
Globus has agreed to pay $52.9 million in cash, subject to certain
closing adjustments, for BMG on a cash-free, debt-free basis.
“We are very excited by the vertical integration opportunity afforded by
BMG to strengthen Globus, both operationally and financially. BMG is an
extremely efficient organization; driven by their 'Right, On Time' credo
to produce high quality, precision medical devices,” said Dave Demski,
President & COO of Globus. “The potential to expand the amount of
products manufactured by BMG in the future represents a significant
opportunity for Globus, and, at the acquisition price, is a compelling
BMG, founded in 2005, today employs over 100 highly skilled people in
their 50,000+ square-foot facility located in Audubon, PA. BMG’s sales
for 2014 were $23.3 million, on which they earned $9.1 million in
adjusted EBITDA (unaudited). Globus expects the acquisition to be
neutral to its 2015 earnings as the benefit from the reduced costs of
manufactured parts will be delayed as Globus’ current inventory levels
are depleted and will be offset by expected investments to increase
BMG’s manufacturing capacity.
“BMG has grown to be our top supplier by consistently producing our most
complex parts in a highly efficient manner. The close working
relationship we have enjoyed over the years has enabled us to work
together to get products to the market quickly,” commented Andy Iott,
Senior VP of Product Development of Globus. “The ability for enhanced
collaboration between Globus engineers and BMG manufacturing
professionals in the future is an added benefit to the transaction.”
The parties expect the closing of the acquisition to occur in March 2015
following satisfaction of the applicable closing conditions.
Globus will discuss this transaction during its previously announced
quarterly earnings conference call today.
About Globus Medical, Inc.
Globus Medical, Inc. is a leading musculoskeletal implant company based
in Audubon, PA. The company was founded in 2003 by an experienced team
of professionals with a shared vision to create products that enable
surgeons to promote healing in patients with musculoskeletal disorders.
Additional information can be accessed at www.globusmedical.com.
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but are not limited to, factors affecting our quarterly results, our
ability to manage our growth, our ability to sustain our profitability,
demand for our products, our ability to compete successfully (including
without limitation our ability to convince surgeons to use our products
and our ability to attract and retain sales and other personnel), our
ability to rapidly develop and introduce new products, our ability to
develop and execute on successful business strategies, our ability to
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medical device industry, general economic conditions, and other risks.
For a discussion of these and other risks, uncertainties and other
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disclosure contained in our most recent annual report on Form 10-K filed
with the Securities and Exchange Commission, including the sections
labeled “Risk Factors” and “Cautionary Note Concerning Forward-Looking
Statements,” and in our Forms 10-Q, Forms 8-K and other filings with the
Securities and Exchange Commission. These documents are available at www.sec.gov.
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predict all risk factors and uncertainties, nor can we assess the impact
of all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ materially
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reliance on any forward-looking statements. Forward-looking statements
contained in this press release speak only as of the date of this press
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Source: Globus Medical, Inc.
Globus Medical, Inc.
Director, Investor Relations