Greatbatch’s acquisition of Precimed was structured as a stock purchase. In exchange for the outstanding shares of Precimed, Greatbatch paid approximately CHF123 million in cash and, under terms of the purchase agreement, will pay an additional earnings-based contingent cash payment of up to CHF12 million in 2009.
The purchase price was funded with cash on hand and a borrowing under Greatbatch’s revolving credit agreement. In connection with the transaction, Greatbatch acquired Precimed’s rights and obligations under an agreement to acquire the operations of another company in the orthopedic industry, which transaction is expected to close in early 2008.