Symmetry Divests Non-Medtech Operation

Symmetry Medical Inc. is selling its Clamonta Ltd. subsidiary based in the United Kingdom to HLD Corporation Ltd. for approximately $1.3 million.

Clamonta Ltd serves the aerospace machining industry. Symmetry’s primary business develops medical device solutions, including surgical instruments, orthopedic implants, and sterilization cases and trays,

“The sale of our Clamonta Ltd. subsidiary is an appropriate step to focus on our core markets and reduce our manufacturing footprint,” said Thomas J. Sullivan, president and CEO of Symmetry Medical. “While Clamonta had a challenging 2013 and continued to negatively impact our overall profitability, I am proud of the progress made by the local team and believe they and their customers will be best served as part of a new entity. Symmetry remains committed to the aerospace forging and associated machining segment of the market and will continue to serve aerospace customers from our Lansing, Mich., and Sheffield, U.K., facilities.”

Fred L. Hite, Symmetry’s chief financial officer said Clamonta generated $11.4 million in revenue in 2013, and in the first quarter 2014, reported $4.4 million in revenue with a net loss in both periods.

“With the divestiture, all historical financials will be moved to discontinued operations,” Hite said. “Accordingly, we are updating our revenue guidance to reflect the removal of approximately $15 million of 2014 revenue. Neutralized for discontinued operations and the transition of the New Wave product line from Symmetry Surgical, the high end of our guidance maintains an approximate 5 percent growth for total Symmetry Medical. On the bottom line, we anticipate approximately 16 cents of unfavorable GAAP earning per share impact related to the divestiture along with approximately 2 cents of favorable impact to as adjusted earnings per share as Clamonta Ltd. was projected to have negative impact on earnings per share for the full year 2014. Once the divestiture related accounting details have been confirmed, we will finalize our GAAP and as adjusted earnings per share guidance in conjunction with our next quarterly results.”