UTICA — ConMed Corp. (NASDAQ: CNMD) on Feb. 11 announced that it has completed its acquisition of privately-held Buffalo Filter LLC from Oak Brook, Illinois–based Filtration Group.

The acquired company is located in the Buffalo suburb of Lancaster. 

The Utica–based surgical-device maker had said it would pay $365 million in the transaction when it was first announced in a Dec. 13 news release.

ConMed is financing the transaction through a combination of the net proceeds of the company’s new 2.625 percent convertible notes, which it issued Jan. 29; borrowings under the company’s amended and restated credit facility; and cash on hand. 

The company plans to provide additional guidance regarding the impact of the transaction on 2019 financial results when it reports first quarter financial results in late April.

Job cuts at Buffalo Filter

Buffalo Filter on Feb. 12 filed a notice with the New York State Department of Labor that it would be laying off 15 of its 114 workers. The layoffs will begin during the 14-day period beginning on May 13, and ending on Nov. 29. The reason for the job cuts is listed as “economic.” The company’s filing makes no mention of the merger with ConMed.

Founded in 1991, Buffalo Filter develops surgical-smoke evacuation technologies, ConMed said. The company’s product portfolio includes smoke-evacuation pencils, smoke evacuators, and laparoscopic products.

On its website, Buffalo Filter describes surgical smoke as a “dangerous by-product generated from the use of lasers, electrosurgical pencils, ultrasonic devices and other surgical instruments. As these instruments cauterize [or burn the skin or flesh] vessels and destroy (vaporize) tissue, fluid and blood, they create a gaseous material known as smoke.”

Surgeons and physicians use ConMed’s products in a variety of specialties, including orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery and gastroenterology. ConMed, which employs about 3,100 people, has a direct selling presence in 19 countries, and international sales make up about 50 percent of the company’s total sales. 

The Empire State Manufacturing survey general business-conditions index rose 5 points to 8.8 in February.

It marked a bit of a bounce back after the index had fallen 8 points to 3.9 in January, “its lowest level in well over a year.”

The February reading, based on firms responding to the survey, indicates “business activity grew modestly in New York,” the New York Fed said in its Feb. 15 survey report.

A positive reading indicates expansion or growth in manufacturing activity, while a negative index number shows a decline in the sector.

The survey found 32 percent of respondents reported that conditions had improved over the month, while 23 percent said that conditions had worsened, the New York Fed said.

Survey details

The new-orders index climbed 4 points to 7.5. The shipments index fell 8 points to 10.4, its “lowest level in well over a year,” though the index reading does indicate a “decent pace” of growth, the New York Fed said.

Unfilled orders held steady, inventories were little changed, and delivery times were slightly longer.

The index for number of employees fell for a second straight month, declining 3 points to 4.1. But since it was still a positive number, it pointed to “slight increase” in employment levels. The average-workweek index moved down to 2.5. 

The prices-paid index fell for a third consecutive month, sliding 9 points to 27.1, indicating a “continued slowing” of input-price increases. The prices-received index increased 10 points to 22.9, “suggesting that selling price increases picked up.”

Manufacturing firms in New York were more optimistic about the six-month outlook than last month. 

After dipping in January, the index for future business conditions rose 15 points to 32.3. The indexes for future new orders and shipments climbed to similar levels. Firms expected employment and hours worked to increase at a solid pace in the months ahead. 

The capital-expenditures index rose 11 points to 29.3, and the technology spending index edged up to 22.1.

The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.