Medline has signed a definitive agreement to acquire select assets under the Hudson RCI brand of Teleflex’s Respiratory business for $286m in cash.
The deal value is reduced by $12m in working capital, which will be retained by Teleflex.
The Hudson RCI brand of respiratory consumables covered by the agreement includes oxygen and aerosol therapy, active humidification, non-invasive ventilation and incentive spirometers.
These products generated a revenue of $139m last year, Teleflex noted.
The proceeds from the respiratory asset sale will be used by the company to pay down debt. Teleflex expects that this deal will boost financial flexibility for its growth strategy.
Teleflex chairman, president and CEO Liam Kelly said: “Following a comprehensive review of our strategy and core capabilities, our board of directors and management team decided that divesting a significant portion of our respiratory business will enable Teleflex to focus further on executing in our core market segments to drive long-term sustainable growth and increase shareholder value.
“We expect the proceeds from the divestiture of this business, along with our ability to continue to generate cash from operations, to help us on our journey to execute our strategic plan.”
Medline will merge the acquired products into its respiratory portfolio to meet healthcare requirements in the acute care and post-acute care markets.
Medline operating room and new products division vice-president Ghislain de Nanteuil said: “Hudson RCI brings a very broad and well-recognised respiratory portfolio to Medline Europe.
“We are extremely excited to expand our offering in the respiratory environment with the highly regarded Hudson RCI products, which opens further opportunities for development and support for our customers in Europe, especially as the Covid-19 pandemic continues.”
Subject to necessary regulatory approvals and various closing conditions, the deal is anticipated to conclude in the third quarter of this year.
In April 2019, Medline signed a definitive agreement to buy NAMIC’s fluid management business from AngioDynamics for $167.5m.