), a global leader in medical devices, recently completed its
divestiture of its original equipment manufacturer (OEM)
Orthopedics business. The company had earlier inked a definitive
agreement to sell the business to Tecomet for $45.2 million in
The core capabilities of the divested business include dental,
spinal and small bone implant systems and implant insertion
instruments, flat or anatomic plates, mono- and poly-axial screws,
straight and pre-bent rods and connectors.
Per management, the divestiture of this business underlines the
company's strategic plan to focus on branded products, new product
introductions and investment in innovative technologies to boost
long run growth, as well as drive margin expansion. The Teleflex
Medical OEM division is in the meanwhile extending its TFX OEM and
Deknatel brands, which are excluded from the deal.
For future consolidated financial statements, Teleflex will
reclassify its OEM Orthopedic business as discontinued operations.
The company's legal counsel for the divestiture was Ballard Spahr
Teleflex, headquartered in Limerick, Pennsylvania, is a
manufacturer and provider of medical devices used in critical care
and surgery. Its move to divest OEM Orthopedic division along with
the strategy of developing new, innovative products should help
improve its financial performance in the long run. The proceeds
from the sale of the OEM Orthopedic business, coupled with
Teleflex's ability to generate sufficient cash flow from operations
will allow it to exploit growth opportunities.
) which operate in similar business segments present a tough
competitive landscape for Teleflex. Additionally, the company
operates in a stringent regulatory environment. The demand for its
products is susceptible to healthcare reimbursement systems in the
domestic as well as the international market.
Teleflex currently retains a Zacks #4 Rank, which translates
into a short-term Sell rating.
BARD C R INC (BCR): Free Stock Analysis Report
CAREFUSION CORP (CFN): Free Stock Analysis
COVIDIEN PLC (COV): Free Stock Analysis Report
TELEFLEX INC (TFX): Free Stock Analysis Report
To read this article on Zacks.com click here.