Greatbatch acquires Precimed, builds orthopedic presence.

In early January, Greatbatch completed its acquisition of Precimed, a supplier to the orthopedic industry. Structured as a stock purchase, Greatbatch paid approximately CHF 123 million in cash for outstanding shares of Precimed and will pay an additional earnings-based contingent cash payment of up to CHF 12 million in 2009. Greatbatch's purchase includes Precimed's contract to acquire the operations of another (undisclosed) company in the orthopedic industry.

Greatbatch's acquisition of Precimed is expected to position it as one of the top three suppliers to orthopedic OEMs while diversifying its market presence in the orthopedic market, the company said. Greatbatch, headquartered in Clarence, NY, also is immersed in the cardiac rhythm management, vascular, neurostimulation and specialty commercial power markets.

"This acquisition supports our strategic vision to be a key global component supplier to the medical device industry," said Thomas J. Hook, Greatbatch's president and CEO. "Precimed has a breadth of production capabilities, technology and relationships with orthopedic OEMs that provides a key competitive differentiator in the market."

Precimed is headquartered in Orvin, Switzerland and Exton, PA, with manufacturing operations throughout Switzerland and Indiana and various sales offices in Japan, Asia and the United Kingdom. The company's products, which include instrumentation for hip and knee replacement, trauma and spine, are used for growing markets such as minimally invasive surgery, resurfacing, computer-aided surgery and radio-frequency identification tracking.

With this acquisition, Greatbatch has projected a 2008 pro forma of $500 million to $550 million, of which Precimed will contribute $100 million to $120 million.