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Greatbatch Inc Buys Lake Region Medial

Greatbatch Inc, a medical technology company, announced it would acquire privately owned Lake Region Medial, formally Accellent Inc, in a transaction valued at $1.73 billion in a “transformational” move to diversify its range of products in the medical device industry.

Greatbatch Chief Executive Thomas Hook said, the deal would create one of the industry’s largest device outsourcing companies in the market, but will still only own a 10-12% share of the industry.

Lake Region Medial provides contract manufacturing and research and development services to medical device makers.

Shares for Greatbatch rose 8.6% at $54.17 in early trading on Thursday.

Greatbatch shares were up about 8.6 percent at $54.17 in morning trading on Thursday.

The newly combined company will employ more than 9,000 and will service the cardiac, vascular, orthopedics and advanced surgical markets, with operations in United States, South America, Europe, and the Asia Pacific region.

Greatbatch will pay $478 million in cash and 5.1 million shares and options to Lake Region Medical and take on about $1 billion of net debt.