Integra to Acquire Acclarent from Ethicon

On Dec 14, 2023

Princeton-based Integra LifeSciences has entered into a definitive agreement to acquire Acclarent, Inc. from Ethicon, Inc., a Johnson & Johnson MedTech company, for $275 million in cash (subject to customary purchase price adjustments) and an additional $5 million upon the achievement of certain regulatory milestones.

Acclarent is an innovator and market leader in ENT procedures and the acquisition will make Integra one of the leading providers of ENT products and technologies.

“Acclarent’s culture of pioneering technologies aligns with Integra’s legacy of innovation to transform care and restore patients’ lives,” said Jan De Witte, president and chief executive officer of Integra LifeSciences. “We are looking forward to welcoming the Acclarent employees to the Integra team. Together, we can make a profound impact on the future of ENT and neurosurgery.”

The US ENT specialty devices market is growing at 5-6% and will add approximately $1 billion to the CSS global total addressable market. The Acclarent portfolio includes its groundbreaking balloon technologies for sinus dilation and eustachian tube dilation as well as surgical navigation systems.

Acclarent is headquartered in Irvine, California, and derives its revenues from US product sales, which generated about $110 million in 2022 and gross margins in line with Integra’s company average. The company maintains R&D facilities in Irvine and Haifa, Israel, and uses third-party manufacturers.

“The ENT segment is an anatomical adjacency to neurosurgery. For example, this acquisition will provide opportunities for ENT and neurosurgeons to closely collaborate on tumor care using skull base approaches,” said Mike McBreen, president of the CSS division. “Acclarent’s strong commercial capabilities, R&D expertise, advanced portfolio and deep clinical knowledge will be important assets to Integra, allowing us to deliver future innovation not only within ENT, but also across our other CSS technology platforms.”

Integra currently participates in the ENT category with its MicroFrance® line of ENT instruments.

Integra expects to provide detailed guidance regarding the financial impacts of this transaction upon closing. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by the second quarter of 2024. Following the close, transition services, including transition manufacturing services, will be provided for up to four years.

Goldman, Sachs & Co. is serving as exclusive financial advisor and Morgan, Lewis & Bockius LLP is acting as legal advisor to Integra.

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