Symmetry Medical sells OEM Solutions, launches new surgical business

Symmetry Medical recently announced it has entered into a definitive agreement to sell its OEM Solutions business to Tecomet and simultaneously transfer shareholder ownership into a new company holding for its surgical business.

Under the agreement, Tecomet will purchase Symmetry OEM Solutions for $450 million in cash, or $7.50 per share after fees and elimination of outstanding debt, according to a company press release. Shareholders of Symmetry Medical will be given ownership stakes in Symmetry Surgical, which will become a new publicly traded company after the agreement is consummated. Shares of Symmetry Medical will be converted to shares of Symmetry Surgical at a 4-to-1 ratio. The transaction is expected to be completed by the end of 2014.

“We are excited to reach this agreement with Tecomet, which will recognize the value of the OEM Solutions business and enhance the growth potential of Symmetry Surgical,” Thomas J. Sullivan, president and CEO of Symmetry Medical, said in the press release. “As a standalone company, Symmetry Surgical will be uniquely attentive to the needs of its customers across the breadth of the surgical instrument market, with a distinct clinical and health economic focus without the distraction of implant or other more regulatory demanding product lines.”