Tecomet to Acquire Teleflex’s Orthopedics Business
Posted on July 18, 2012 @ 10:21 am
Teleflex Inc. is selling its OEM orthopedics business to Tecomet for $45.2 million in cash. Majority owner of Wilmington, Mass.-based Tecomet, Charlesbank Capital Partners, financed the transaction. The OEM orthopedics business generated net revenues of approximately $36 million for Teleflex in 2011.
"The decision to divest the OEM orthopedics business is consistent with our strategy to focus on our branded products, invest in late-stage innovative technologies to support our long-term growth, and expand both our gross and operating margins," stated Benson F. Smith, Teleflex chairman, president and CEO. "The proceeds from the divestiture of this business, along with our ability to continue to generate cash from operations, will enable us to continue to execute our strategic plan for future growth."
“We are very excited about the additional capabilities this acquisition adds to our portfolio and we welcome the talented and capable Kenosha, Wisconsin workforce to the Tecomet team,” said Tecomet’s CEO Bill Dow.
The transaction is subject to customary closing conditions and is expected to close during the third quarter of 2012.
After the acquisition is finalized, the Teleflex Medical OEM will focus its attentions on expanding its Deknatel (a line of sutures) and TFX OEM (custom extrusion, catheter fabrication, and medical devices) brands.
Based in Limerick, Pa., Teleflex produces products for the critical care market.
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