Covidien to Sell Confluent Surgical Product Line to Integra LifeSciences
(NYSE: COV), a leading global provider of healthcare products, announced
today that it has entered into a definitive agreement with Integra
LifeSciences Corporation to sell its Confluent Surgical product line.
The transaction is expected to close by March 31, 2014, subject to
receipt of regulatory approvals.
Under the terms of the agreement, Covidien will receive an initial cash
payment of $235 million from Integra upon the closing of the
transaction. Additionally, Covidien may receive up to $30 million,
contingent upon the achievement of certain performance measures related
to the transition of the Confluent Surgical business to Integra.
"This transaction allows Covidien to better focus on its global
strategic priorities," said Bryan Hanson, Group President, Medical
Devices & U.S., Covidien. "Based on Integras presence in neurosurgery
and spine surgery combined with a strong portfolio of clinical evidence,
we believe these products will thrive under Integras ownership. We
express our sincere gratitude to our dedicated employees and the
clinicians who have partnered with us throughout the years."
Confluent Surgical products include: DuraSeal, DuraSeal Exact/Xact,
VascuSeal and SprayShield. These products are part of the soft tissue
repair category of Covidiens Medical Devices business and generated
approximately $65 million in sales in fiscal 2012.
Assuming a closing on or before March 31, 2014, Covidien expects the
transaction to be several cents dilutive to fiscal 2014 earnings per
share; however, the underlying strength of Covidiens existing
businesses is expected to offset this dilution. As a result, Covidien
does not anticipate this transaction will have a material impact on its
fiscal 2014 outlook.
Covidien is a leading global healthcare products company that creates
innovative medical solutions for better patient outcomes and delivers
value through clinical leadership and excellence. Covidien manufactures,
distributes and services a diverse range of industry-leading products in
medical devices and supplies. With 2012 revenue of $9.9 billion,
Covidien has 38,000 employees worldwide in 70 countries, and its
products are sold in over 140 countries. Please visit www.covidien.com
to learn more about our business.
CovidienJohn Jordan, 508-452-4891Manager, CommunicationsSurgical
Lannum, CFA, 508-452-4343Vice PresidentInvestor Relationscole.email@example.comMarguerite
Copel, 203-821-4720Vice President, CommunicationsSurgical
Carpenter, 508-452-4363Senior DirectorInvestor Relationstodd.firstname.lastname@example.org