Symmetry Medical to Acquire DePuy Orthopedic Instrument Facility
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Additional Agreement with Four-Year Order Volume Commitment
WARSAW, Ind., Dec. 17 -- Symmetry Medical Inc. (NYSE:SMA), an independent provider of products to the global orthopedic device industry and other medical markets, announced today that it has signed a definitive agreement to purchase an orthopedic instrument manufacturing facility in New Bedford, MA from DePuy Orthopaedics, Inc for $45 million in cash, subject to adjustments.
Symmetry and DePuy will enter into a supply agreement which will require DePuy to make minimum purchases from the New Bedford facility for a four year period following the close of the acquisition. Symmetry expects to close the acquisition within 60 days.
Symmetry has also entered into a waiver and amendment to its existing Amended and Restated Credit Agreement with Wachovia Bank which will provide the required funding of the acquisition and which will also provide waivers to remove the earlier reported default status.
Brian Moore, President and Chief Executive Officer, stated, "We are delighted to announce this strategic agreement and the strengthening of our well established relationship with one of our major customers. The New Bedford facility is advantageous to Symmetry and its leading position as a supplier to the orthopedic industry on multiple levels. It adds a high quality instrument manufacturing facility and another skilled workforce to our operational group. In addition to the instrument purchases from DePuy, the facility offers additional capacity for further customer growth. We believe that the facility will strengthen our East Coast presence and will complement our strong global operational network. It will also allow us to increase our responsiveness and product offering to our global customer base and enable us to gain market share in the instrument arena."
"We continue to be encouraged by the overall orthopedic environment and the robust order flow we are experiencing across our global network."
About Symmetry Medical Inc.
Symmetry Medical Inc. is a leading independent provider of implants and related instruments and cases to the orthopedic device industry. The Company also designs, develops and produces these products for companies in other segments of the medical device market, including arthroscopy, dental, laparoscopy, osteobiologic and endoscopy sectors and provides limited specialized products and services to non-healthcare markets, such as the aerospace market.
Source: Symmetry Medical Inc.
CONTACT:
Fred L. Hite
Senior Vice President and Chief Financial Officer of Symmetry Medical Inc.
+1-574-371-2218
Investors/Media
Nick Laudico
+1-646-536-7030
nlaudico@theruthgroup.com
or
Jason Rando
++1-646-536-7025
jrando@theruthgroup.com
