Lewisville medical device maker merger will create $700 million a year business

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Lewisville-based Orthofix will merge with a California-based company to form a medical device maker with combined sales of nearly $700 million and products distributed in 68 countries.

The all-stock deal with SeaSpine, a Carlsbad-based company that makes spine and orthopedic devices, is expected to close early next year. The combined company, to be named at closing, will be headquartered in Lewisville with offices in Carlsbad and Verona, Italy.

SeaSpine CEO Keith Valentine said in a statement that the deal creates “an industry leader with the immediate financial strength to self-fund investments that deliver both growth and better patient outcomes.” .

Valentine will lead the new company as Managing Director. Orthofix CEO Jon Sermousek will become executive chairman.

Orthofix shareholders will own 56.5% of the combined companies upon closing. SeaSpine shareholders will receive 0.4 shares of Orthofix common stock for each share held.

Both companies focus on spinal and orthopedic technology, partnering with surgeons treating patients with spinal disorders and injuries. They also produce bone healing therapies, spinal implants and braces.

Sales of Orthofix have been flat this year, totaling $339 million through September 30. Its revenue for last year was $464 million. In August, SeaSpine said it expected to post double-digit growth this year, with revenue of around $235 million.

“We look forward to capitalizing on the tremendous value creation opportunities of this merger,” Serbusek said.

In addition to offices in Texas, California and Italy, the combined company’s 1,600 employees will work from facilities in Irvine and Sunnyvale, Calif.; Toronto, Canada; Wayne, Pennsylvania; Olive Branch, Miss.; Maidenhead in England; and Munich, Paris and Sao Paulo.

Lewisville medical device maker merger will create $700 million a year business

Orthofix’s association with SeaSpine brings together two companies specializing in spinal and orthopedic appliances.

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