Exactech Announces Divestiture of Spine Assets and Restructuring Charges
January 31 2017 - 4:01PM
Business Wire
With the goals of increasing productivity, enhancing
profitability of its worldwide business, and strengthening its
focus on core competencies, Exactech, Inc., (Nasdaq: EXAC), a
developer and producer of bone and joint restoration products for
extremities, hip, knee and spine, has announced the restructuring
of its Spine and Biologics business segment including the
divestiture of its spine products business and restructuring
charges related to international operations. The divestiture was
executed through a spine asset sale today to ChoiceSpine, a private
enterprise headquartered in Knoxville, TN. Terms of the transaction
were not released.
Exactech CEO David Petty said, “For nearly a decade, Exactech
has driven innovations in spinal surgery and we are pleased to have
made meaningful contributions to patient care. We are confident the
transfer of these products to ChoiceSpine will provide a continued
focus on improving patient care for that population. This
divestiture will allow us to sharpen our focus on investments in
the core extremities and large joint segments of our business.”
According to Martin Altshuler, who co-founded ChoiceSpine with
Rick Henson, “The additional technologies that Exactech has access
to, combined with our expanding portfolio, allows us to further
solidify our company as a premier, full-line spinal fusion provider
in the U.S., with further growth opportunities in select
international markets,” said Altshuler.
“We’re now in a position to dive deeper into our growth strategy
by adding and introducing new distribution and surgeon users to our
current and future technologies that we plan to launch over the
next few months,” added Henson.
Exactech stated that the restructuring initiative and losses on
the impairment of Spine and Biologics assets, including goodwill
and spine assets sold, will result in a pre-tax charge to 2016
earnings in the range of $15-17 million. Looking ahead, the company
expects 2017 revenue to be in the range of $264 - $272 million and
earnings per share to be in the range of $1.24 to $1.32.
Earnings for 2016 will be released on Tuesday, February 21, 2017
before market open, and additional restructuring details will be
reviewed during the company’s 2016 year-end earnings call on
Tuesday, February 21, 2017 at 10AM ET.
About Exactech
Based in Gainesville, Fla., Exactech develops and markets
orthopaedic implant devices, related surgical instruments and
biologic materials and services to hospitals and physicians. The
company manufactures many of its orthopaedic devices at its
Gainesville facility. Exactech’s orthopaedic products are used in
the restoration of bones and joints that have deteriorated as a
result of injury or diseases such as arthritis. Exactech markets
its products in the United States, in addition to more than 30
markets in Europe, Latin America, Asia and the Pacific. Additional
information about Exactech can be found
at http://www.exac.com.
A current investment profile on Exactech (Nasdaq: EXAC) is
available online at http://www.hawkassociates.com/profile/exac.cfm.
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About ChoiceSpine
ChoiceSpine is a privately held spinal implant company located
in Knoxville, Tenn., and prides itself on providing excellent
products and exceptional service to meet the needs of their
customers. ChoiceSpine offers a breadth of innovative and surgeon
focused systems that are designed to be safe, efficient, and
easy-to-use. By working closely with physicians and maintaining
service-focused distribution, ChoiceSpine will continue to bring
technically-superior spinal products to the market.
This release contains various forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, which represent
the company’s expectations or beliefs concerning future events of
the company’s financial performance. These forward-looking
statements are further qualified by important factors that could
cause actual results to differ materially from those in the
forward-looking statements. These factors include the effect of
competitive pricing, the company’s dependence on the ability of
third party manufacturers to produce components on a basis which is
cost-effective to the company, market acceptance of the company’s
products and the effects of government regulation. Results actually
achieved may differ materially from expected results included in
these statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170131006317/en/
Exactech, Inc.Investor contactsJody Phillips,
352-377-1140Executive Vice President of Finance &Chief
Financial OfficerorHawk AssociatesJulie Marshall or Frank Hawkins,
305-451-1888EXAC@hawkassociates.comorMedia
contactsExactechPriscilla Bennett, 352-377-1140Vice President,
Corporate & Marketing CommunicationorChoiceSpine, LPAnderson
Collins, 865-246-3333Business
Developmentacollins@choicespine.com
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