Local medical tech company part of $3.1B merger deal

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Apr. 27—The shareholders of a company owning a West Carrollton medical technology manufacturing facility voted Thursday to approve a corporate merger.

NuVasive Inc., a medical spine technology company, said shareholders approved the adoption of the company's merger agreement with Audubon, Pa.-based Globus Medical in a deal said to be worth more than $3 billion.

"The impact of our merger with Globus Medical will accelerate our strategy on-site in West Carrollton. Globus Medical loves our site — and supports further investment to help make our campus in Ohio a key contributor to the company's go-forward success," Michael Farrington, NuVasive's chief people and culture officer, said in response to questions about how the merger would impact the company's West Carrollton location.

Globus Medical expects to maintain NuVasive's operations in West Carrollton, San Diego and Memphis, Tenn., Dan Scavilla, chief executive of Globus Medical, told the San Diego Tribune.

"This is not a deal that needs to be driven by synergies," Scavilla told the newspaper. "We don't need to get in and do a slash and burn to make this work. It works pretty easily, and while we will look at some synergies that will naturally occur, this is not a high-risk project."

Pre-pandemic, the San Diego spinal-implant products company intended to build up to 85% of its products in its 170,000-square-foot Liberty Lane facility in West Carrollton.

By 2018, NuVasive had invested $45 million into its West Carrollton plant, five years after the company decided to start making its own spinal-care devices, instead of outsourcing that work.

The company also bought a small Fairborn manufacturer, ANC LLC, in May 2013 for $4.5 million.

ANC at the time had about 65 employees. When it was time to expand that operation, NuVasive elected to stay in the Dayton area, picking a former Motoman plant in late 2015 to get bigger.

By 2018, NuVasive had nearly 300 local employees. The company at the time called the local facility the "largest and most advanced spine medical device factory in the world."

Today, the site has more than 300 employees.

Under the terms of the merger agreement, NuVasive shareholders will receive 0.75 of a share of Globus Medical Class A common stock for each share of NuVasive common stock owned at the closing of the transaction.

"We appreciate our shareholders' strong support for NuVasive's combination with Globus Medical," Chris Barry, chief executive of NuVasive, said in a statement. "We look forward to closing the transaction and realizing the significant benefits created by joining our more than 5,000 employees, geographic footprints, highly complementary innovations, customer bases and leading portfolios."

Globus Medical was holding a separate meeting of shareholders Thursday to vote on the issuance of Globus Medical shares to NuVasive shareholders.

The final voting results of the NuVasive special meeting will be reported in a form 8-K filed by NuVasive with the U.S. Securities and Exchange Commission.

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