), a global leader in medical devices, recently inked a definitive
agreement to acquire all the assets of Willemstad, Netherlands
based LMA International N.V. for $276 million in cash.
The acquisition is expected to enhance Teleflex's anesthesia
product line as LMA is a global provider of medical equipment to
anesthetists. LMA is also considered to be a worldwide leader in
laryngeal masks which will allow Teleflex to gain market leading
position for the product.
The transaction has been approved by the Board of both the
companies. The agreement is subject to the consent of LMA's
shareholders, regulatory approvals and other standard closing
LMA was founded in 1998 and is listed on the Mainboard of the
Singapore Exchange. The company recorded revenues of $123.9 million
Separately, Teleflex announced that it had forged a definitive
agreement with the stockholders of Intavent Direct Limited to buy
LMA's laryngeal mask supraglottic airway business and other
equipment in the UK, Ireland and Channel Islands. Intavent is the
leading supplier of airway devices in the UK. The revenues for the
business line came in at $8.2 million in 2011.
Conjointly, Teleflex expects the acquisitions to be accretive to
the company's adjusted earnings per share in the range of 3 cents
to 4 cents for 2012 and 35 cents to 40 cents for 2013. This
projection excludes non-recurring purchase accounting items and
other costs associated with takeovers and mergers.
Collectively, these acquisitions will expand Teleflex's
anesthesia and respiratory care business line. This will result in
a well-regarded, highly diversified business segment with annual
sales of $530 million or higher. Per management, the acquisitions
will also extend the company's supply chain. The company intends to
achieve this through improved relationships with group purchasing
Teleflex expects to complete both the acquisitions in the fourth
quarter of 2012. Its financial advisor is Brown Brothers Harriman
& Co. while Simpson Thacher & Bartlett LLP is acting as the
legal counsel for both agreements.
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 along with the
strategy of developing new, innovative products should help improve
its financial performance in the long run. The company's focus on
profitable and consistent growth with new product introduction and
portfolio expansion via acquisition is expected to yield
) which operate in similar business segments present a tough
competitive landscape for Teleflex. Additionally, the company
operates in a seasoned 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.
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