(Adds details, share move)
Aug 4 Symmetry Medical Inc said it would
sell its orthopedic device component business to privately held
Tecomet Inc for $450 million.
The company's shares jumped as much as 13 percent in early
trading on Monday, to be among the top percentage gainers on the
New York Stock Exchange.
Symmetry Medical will transfer ownership of its remaining
surgical instruments business to its shareholders as a new
The split will help the surgical instruments business pursue
its market better, without any clash of interest with customers
of its original equipment manufacturer (OEM) business, Symmetry
"Symmetry's OEM business makes implants and other devices
for large orthopedic manufacturers. Having a surgical
instruments business that sells directly to hospitals could make
them a potential competiton to the OEM business. So it makes
sense to sell it," Piper Jaffery analyst Matt Miksic said.
Shareholders will receive one share in the new company,
after the spin-off, for every four Symmetry Medical shares
The sale of the OEM business, a provider of implants,
instruments and sterilization cases to orthopedic device makers,
will fetch Symmetry Medical $7.50 per share after paying fees
The OEM business contributed about 80 percent to Symmetry
Medical's second-quarter revenue, growing at nearly 5 percent.
Revenue from the company's surgical equipment revenues declined
about 9 percent.
Stifel was Symmetry Medical's exclusive financial advisor,
while Ropes & Gray LLP was its legal counsel.
(Reporting By Amrutha Penumudi,; Editing by Joyjeet Das)