Globus Medical Buys Allograft Tissue Processing Company

Globus Medical Inc. has acquired allograft tissue processor Transplant Technologies of Texas Ltd. (TTOT). Based in San Antonio, TTOT provides human tissue products including bone allografts, biomaterials, and soft-tissue products for the spine, orthopedics, sports medicine, dental and wound care markets.

Terms of the deal were not disclosed.

“This acquisition of TTOT will complement the Globus biologics product portfolio and represents a key step in fulfilling our strategy of building a broad business in regenerative biologics,” said David Paul, chairman and CEO of Audubon, Pa.-based Globus Medical, which makes spine implants. “TTOT’s products and capabilities will better position Globus in existing allograft markets while also providing a dedicated source of supply for our pipeline of products utilizing human allograft tissue. We expect to continue our mission of bringing health to patients with musculoskeletal disorders through the gift of life from donors.”

Joe Mims, CEO of Transplant Technologies of Texas said his company’s “mission” has been to view “every donation as an opportunity to serve.”

Transplant Technologies of Texas processes sterile human tissue and distributes a variety of allograft implants including machined spine implants, demineralized bone matrix and sponge allografts as well as traditional bone allografts. TTOT also processes and distributes sports medicine tendons, birth tissue allografts, and dermal allografts. The firm was founded in 1993.

“I am glad that we have partnered with a company such as Globus that shares our mission regarding patient care and values the gift of life from donors,” said Mims. “We are excited about the opportunity to expand the reach of our current products and to continue developing new products. Having spent a great deal of time with David and the Globus team, I am encouraged by the complementary fit of our organizations.”

According to company leadership, Globus plans to maintain and grow TTOT’s operations in Texas and maintain existing relationships with its distribution partners. Globus also expects to leverage and grow TTOT’s product portfolio, bringing new tissue-based products to market.

Globus anticipates TTOT to contribute approximately $2 million in additional sales and be neutral to fully diluted earnings per share for the fourth quarter of 2014. For 2015, Globus anticipates a contribution from TTOT of approximately $12 million in annual sales and a neutral impact to fully diluted earnings per share for the year.