Teleflex Completes Divestiture of Respiratory Assets to Medline Industries
By Blair Klein | June 28, 2021
Today, Teleflex Incorporated (NYSE:TFX), a leading global provider for healthcare supplies and services, announced it has completed the previously announced divestiture of a significant portion of its Respiratory business to Medline Industries, Inc. (“Medline”) for $286 million in cash, reduced by $12 million in working capital not transferring to Medline.
The divested Teleflex respiratory product lines include Hudson RCI® products for oxygen and aerosol therapy, active humidification, non-invasive ventilation, and incentive spirometers, all of which generated $139 million in revenue in 2020. In 2021, the divested respiratory product lines were expected to contribute net revenue approximately flat with the $139 million in 2020.
Based on the date of closing, the company estimates a revenue headwind of $28-$32 million and adjusted earnings per share dilution of $0.10-$0.15 in 2021 or approximately 1% of 2021 adjusted earnings per share, net of a manufacturing services agreement that Teleflex has entered into with Medline as of the initial closing of the sale transaction. Teleflex intends to use the proceeds from the divestiture to pay down debt, augmenting its financial flexibility to support its growth strategy.
About Teleflex Incorporated
Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation – a relentless pursuit of identifying unmet clinical needs – to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.
Teleflex is the home of Arrow®, Deknatel®, LMA®, Pilling®, Rüsch®, UroLift®, and Weck® – trusted brands united by a common sense of purpose.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Any forward-looking statements contained herein are based on our management’s current beliefs and expectations, but are subject to a number of risks, uncertainties and changes in circumstances, which may cause actual results or company actions to differ materially from what is expressed or implied by these statements. These risks and uncertainties are identified and described in more detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.