Integer Holdings Corporation Completes Divestiture of Non-Medical Business for $50 Million

Rhea-AI Summary

Integer Holdings (NYSE: ITGR) has completed the sale of its Electrochem business to Ultralife for $50 million in cash. The company will use the proceeds to reduce its outstanding debt. This divestiture transforms Integer into a pure-play medical technology company, focusing exclusively on its medical device contract development and manufacturing operations (CDMO). The strategic move aims to enable Integer to deploy additional capital in high-growth medtech markets.

Positive

• Received $50 million in cash from the sale of Electrochem business
• Debt reduction through sale proceeds
• Strategic focus on pure-play medical technology business
• Increased capital availability for high-growth medtech markets

Negative

• Loss of revenue stream from Electrochem business division

Insights

Financial Analyst

The $50 million divestiture of Electrochem marks a strategic shift for Integer Holdings, transforming it into a pure-play medical technology CDMO. This move strengthens the company's balance sheet by reducing debt and sharpens its focus on the higher-margin medical device sector. The medical technology market typically commands higher multiples than industrial segments, which could positively impact Integer's valuation. With a market cap of $4.17 billion, this transaction represents approximately 1.2% of the company's value but removes non-core operations that could have been diluting margins. The debt reduction will improve the company's financial flexibility for future medical technology acquisitions and organic growth initiatives.

Electrochem divestiture makes Integer a pure-play medical technology company

PLANO, Texas, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE: ITGR), a leading medical device contract development and manufacturing organization (CDMO), today announced the completion of the previously announced sale of its Electrochem business to Ultralife Corporation for $50 million in cash.

Integer will use the proceeds from the sale to pay down outstanding debt.

“With the divestiture of Electrochem, Integer is now a pure-play medical technology company with additional capital to deploy in high-growth medtech markets,” said Joseph Dziedzic, Integer President & CEO. “I would like to thank the Electrochem team for all their contributions over the years. We think Electrochem has a bright future under the ownership of Ultralife.”

To learn more about Integer, visit www.integer.net.

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, Integer is committed to enhancing the lives of patients worldwide by providing innovative, high-quality products and solutions. The company's brands include Greatbatch Medical^® and Lake Region Medical^®. Additional information is available at www.integer.net.

Forward-Looking Statements
Some 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 statement relating to our use of proceeds from the transaction. 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 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:	Media Relations:
Andrew Senn	Kelly Butler
andrew.senn@integer.net	kelly.butler@integer.net
763.951.8312	469.731.6617

FAQ

How much did Integer Holdings (ITGR) sell its Electrochem business for?

Integer Holdings sold its Electrochem business to Ultralife for $50 million in cash.

What will Integer Holdings (ITGR) do with the proceeds from the Electrochem sale?

Integer Holdings will use the proceeds from the Electrochem sale to pay down outstanding debt.

What type of company is Integer Holdings (ITGR) after the Electrochem divestiture?

After the Electrochem divestiture, Integer Holdings is now a pure-play medical technology company focused on medical device contract development and manufacturing.

Who purchased Integer Holdings' (ITGR) Electrochem business?

Ultralife purchased Integer Holdings' Electrochem business.