01.22.14
Dublin, Ireland-based Covidien plc has completed the sale of its Confluent Surgical product line, which Integra LifeSciences Holdings Corp. agreed to buy late last year. The cost of the acquisition was about $235 million in cash, which Integra paid in cash. In addition, Covidien may receive up to an additional $30 million, contingent upon the achievement of certain performance measures related to the transition of the Confluent Surgical product line to Integra.
The product line includes surgical sealants, adhesion barriers, and—most notably—the DuraSeal, which is used in spinal surgery and applied over stitches to prevent cerebrospinal fluid from leaking out of the incision site. The technology was approved by the U.S. Food and Drug Administration in 2009. The companies expect to complete this transaction by the end of the first calendar quarter of 2014, pending the standard regulatory approvals.
While Covidien expects this transaction to be several cents dilutive to fiscal 2014 earnings per share, it also expects that the underlying strength of its existing businesses will offset this dilution. As a result, Covidien does not anticipate this transaction will have a material impact on its fiscal 2014 outlook.
According to Covidien executives, the divestment was completed in order for the company to better focus its resources on global strategic priorities.
The product line includes surgical sealants, adhesion barriers, and—most notably—the DuraSeal, which is used in spinal surgery and applied over stitches to prevent cerebrospinal fluid from leaking out of the incision site. The technology was approved by the U.S. Food and Drug Administration in 2009. The companies expect to complete this transaction by the end of the first calendar quarter of 2014, pending the standard regulatory approvals.
While Covidien expects this transaction to be several cents dilutive to fiscal 2014 earnings per share, it also expects that the underlying strength of its existing businesses will offset this dilution. As a result, Covidien does not anticipate this transaction will have a material impact on its fiscal 2014 outlook.
According to Covidien executives, the divestment was completed in order for the company to better focus its resources on global strategic priorities.