Covidien Proposes Incorporating in Ireland

Covidien Ltd., which is largely operated out of Mansfield, MA, but formally headquartered in Bermuda, said it wants to move its incorporation to Ireland next year. This move is part of a reorganization that will create a newly formed Irish company, Covidien plc. 

The medical device maker said the move offers “increased strategic flexibility and operational benefits” as it expands abroad.
 
Ireland is a member of the European Union, making it easier for Covidien to do business with other European countries, the company said.

“The decision to move to Ireland was made after an extensive analysis of several possible alternatives,” said chief executive Richard J. Meelia in a statement.
 
The move still has to be approved by shareholders and the Bermuda Supreme Court.

Covidien already has five factories and nearly 2,000 employees in Ireland, but only has five employees in Bermuda.
 
The firm said it plans to add finance and regulatory staffers in Ireland and hold most of its board meetings there.

Covidien plans to continue to run the company largely out of Mansfield, where Meelia and many other senior executives are based. It has about 2,000 employees in Massachusetts and 42,000 worldwide.