Symmetry Medical To Sell Business That Makes Up 80% Of Revenue
Symmetry Medical (NYSE: SMA) announced the sale of its OEM Solutions business to Tecomet for $450 million, or $7.50 per share. Symmetry Medical also announced better-than-expected second quarter earnings.
The OEM business made up 79.9 percent of second quarter revenue at $80.9 million. The OEM business grew 5.5 percent year over year whereas the other business, Symmetry Surgical, contracted by 8.7 percent.
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President and CEO Thomas Sullivan commented on the deal, “This morning we announced a proposed transaction to sell our OEM Solutions business and concurrently transfer to Symmetry Medical, Inc.'s shareholders ownership in a new company holding our Symmetry Surgical business. We believe it will maximize shareholder value by providing a premium valuation for the OEM Solutions business along with the upside potential of Symmetry Surgical in the large global market for surgical instruments.”
Second quarter revenue totaled $101.3 million, 2.2 percent better than the analyst estimate of 99.2 million. This generated EPS of $0.17 versus $0.12.
Shares of Symmetry Medical are unchanged in early Monday trading. The issue closed at $8.81 Friday.
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