Wright Medical To Buy France-based Biotech International For $80 Mln

(RTTNews) - Wright Medical Group, Inc. (WMGI) announced Wednesday that it has entered into a definitive agreement to acquire Biotech International, a privately held French orthopaedic extremities company, for $80 million. As part of the transaction, Biotech will spin off its dental business before the close.

Under the deal terms, Wright will acquire Biotech at a total offer price of up to $80 million. This comprise $75 million payable at closing, comprised of approximately $55 million of cash and $20 million of Wright common stock, and up to an additional $5 million of cash contingent upon the achievement of certain revenue milestones in 2014 and 2015.

All Wright common stock issued in connection with the transaction will be subject to a one-year lockup.

The transaction is expected to close in the fourth quarter of 2013.

The company expects the deal to significantly expand its direct sales channel in France and international distribution network. It would also add Biotech's complementary extremity product portfolio to further accelerate growth opportunities in Wright's global Extremities business.

Wright anticipates that the transaction will be neutral to adjusted EBITDA in 2014 and accretive thereafter. The company will provide additional information on the financial impact of this deal along with its third-quarter announcement scheduled for November 4.