Symmetry Surgical Acquires Vesocclude Medical
- First step in acquisition strategy expands proprietary product portfolio and sales network
- $4.0 million purchase price for $3.2 million Last Twelve Months Proforma revenue and $0.5 million Proforma EBITDA
- Purchase price funded from existing cash reserves
- Increases 2015 revenue guidance to $83 to $85 million
NASHVILLE, Tenn., Aug. 28, 2015 (GLOBE NEWSWIRE) -- Symmetry Surgical Inc. (Nasdaq:SSRG) announced today that it has acquired key assets of Vesocclude Medical, LLC (Vesocclude), including its product portfolio of titanium ligation clips and appliers, customer relationships and intellectual property for $4.0 million. The agreement also includes $2.2 million in potential payments based on the achievement of milestones related to new product commercialization, as well as distribution rights for the new products and additional rights for a future acquisition.
Vesocclude's ligation clips and appliers are used in surgical procedures to close tubal anatomic structures such as blood vessels or ducts. The portfolio consists of several sizes of titanium clips used to close the structures, which come loaded in a patented "push and click" cartridge system that facilitates easy loading into either open surgical or endoscopic appliers. In the Last Twelve Months, Vesocclude generated $3.2 million in proforma revenue and $0.5 million in proforma EBITDA.
Symmetry Surgical has represented the Vesocclude™ portfolio as one of its Alliance products since 2010 in select territories globally. Following the acquisition, Symmetry Surgical plans to augment its sales force with the addition of the established Vesocclude sales network, which will enable it to more effectively cover portions of the U.S. and international marketplace. Symmetry Surgical will transition the Vesocclude business operations and distribution from Vesocclude's current Raleigh, NC, facilities to its headquarters in Nashville, TN; and will maintain a product development center in Raleigh with existing Vesocclude employees.
Thomas J. Sullivan, President and Chief Executive Officer of Symmetry Surgical, said, "The acquisition of the Vesocclude business provides growth potential with a product that is familiar to our team and complementary to our broad portfolio of surgical instruments. We have a deep understanding of the Vesocclude™ brand and believe we will be able to continue driving growth with minimal disruption to current commercial operations. We have developed good relationships with the Vesocclude team and are excited to leverage our combined commercial and product development expertise to increase our momentum in the market."
Mr. Sullivan added, "We believe this acquisition represents a positive step in the execution of our initial growth strategy, complementing organic growth with acquisitions that are financed from our existing cash reserves and revolver. Looking forward, we have available cash resources to continue executing on similar sized deals that will drive revenue growth and leverage our established commercial infrastructure, while also turning our attention to larger opportunities."
The Company will provide an overview of the transaction and respond to investor questions at its previously announced investor presentation at the Sidoti Emerging Growth Conference in New York City on Wednesday, September 2, 2015 at 3:30 PM ET. A live webcast of the presentation will be available on www.symmetrysurgical.com as well. The Company's updated investor presentation is currently available on its website at www.symmetrysurgical.com.
The following forward‐looking estimates regarding 2015 guidance reflect first half of 2015 performance and assumes current market conditions and minimal impact of foreign currency rates on revenue and cost. Additionally, it excludes any acquisition related positive EBITDA contributions or any negative one-time deal and transition-related expenses and does not include non-cash purchase accounting adjustments. Actual results may differ materially, and the Company refers you to forward‐looking statements located at the end of the press release. All financial information pertaining to Vesocclude is derived from unaudited financial statements provided by Vesocclude.
The Company is increasing its 2015 financial guidance to reflect the acquisition of Vesocclude. For the full year 2015, the Company expects revenue to be in the range of $83 to $85 million, a $1 million increase from $82 to $84 million previously. The company is not updating EBITDA guidance at this time until the impact of non-cash purchase accounting adjustments are known.
Scott Kunkel, Senior Vice President and Chief Financial Officer of Symmetry Surgical, said, "We expect the addition of the Vesocclude business will increase our 2015 revenue guidance from the previously stated guidance of $82 to $84 million to $83 to $85 million. We also anticipate the transaction would be nominally incremental to EBITDA in 2015 as a result of one-time deal and transition-related expenses. However, EBITDA guidance will not be updated until we know the impact of non-cash purchase accounting adjustments. We are pleased to be able to fund this acquisition out of our strong Free Cash Flow performance in the first half of 2015. As of August 28, Symmetry Surgical has closed this acquisition with no borrowings on its $20 million revolver."
About Symmetry Surgical Inc.
Symmetry Surgical is dedicated to developing and delivering high-quality, innovative surgical instruments that meet clinicians' needs and improve patients' lives. Our team collaborates with healthcare providers around the world to provide medical devices that exceed our customers' expectations and provide solutions for today's needs and tomorrow's growth. Our rich and diverse history creates one of the industry's most comprehensive surgical instrument portfolios, which includes our well-known brands such as BOOKWALTER®, GREENBERG®, OLSEN®, SYMMETRY®, SHARP KERRISON™, FLASH PAK®, CLASSIC®, CLASSIC PLUS®, SECTO®, QUAD-LOCK®, RAPIDCLEAN®, MAGNAFREE®, MIDAS TOUCH®, MICROSECT®, ULTRA INSTRUMENTS®, MULTIPAK®, ACCESS SURGICAL INTERNATIONAL®, RILEY MEDICAL®, TRANSPAK®, OPTI-LENGTH®, THE ULTRA SYSTEM®, BOOKWALTER ROTILT® and VESOCCLUDE™. Symmetry Surgical is headquartered in Nashville, TN. For more information, please visit www.symmetrysurgical.com.
This press release includes statements that express our opinions, expectations, beliefs, plans, objectives and assumptions regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements." These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "expects," "may," "will," "should," "seeks," "projects," "approximately," "intends," "plans," "estimates" or "anticipates," or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed separation and the risks identified, or incorporated by reference, in the prospectus and other filings with the United States Securities and Exchange Commission. Unless required by applicable law, Symmetry Surgical undertakes no obligation to update or revise any such forward-looking statements whether as a result of new information, future events or otherwise.