Integra LifeSciences Holdings (Plainsboro, New Jersey) and Medtronic (Minneapolis) reported an agreement in which Integra will acquire Medtronic's MicroFrance and Xomed manual ENT and laparoscopy instrumentation lines for approximately $60 million in cash. Integra expects the transaction to close, subject to customary closing requirements, in the 4Q14.

The MicroFrance business, which includes Xomed's manual ENT instruments, designs, manufactures and sells reusable handheld instruments to ear, nose and throat and laparoscopy surgical specialists. Integra will acquire a portfolio of approximately 4,000 MicroFrance and Xomed manual ENT and laparoscopic surgical instruments, as well as the St. Aubin le Monial, France manufacturing facility. Integra plans to fund this transaction with cash held outside the U.S.

"This announcement reflects Integra's continuing commitment to building our Instruments business. The transaction provides access to R&D, service & repair and other infrastructure already in place in St. Aubin le Monial, France, which will improve our ability to service our current portfolio and to develop new products," said Debbie Leonetti, Integra's CVP, president, U.S. Instruments. "These products also align nicely with our current sales channels as well as adjacent divisions, particularly our Neurosurgery business."

The addition of the MicroFrance business will expand Integra's Instruments presence outside the U.S. In the most recent annual reporting period, sales from the products being acquired totaled approximately $30 million, two-thirds of which were generated outside the U.S.

Integra expects to record around $27 million to $30 million in revenue and approximately 10 cents of adjusted EPS in calendar 2015 from this acquisition.