TE Connectivity agrees to buy Ireland’s Creganna Medical for $895m

2 February 2016 (Last Updated February 2nd, 2016 18:30)

Swiss manufacturer TE Connectivity has signed an agreement to acquire Ireland-based Creganna Medical from Permira for around $895m.

Swiss manufacturer TE Connectivity has signed an agreement to acquire Ireland-based Creganna Medical from Permira for around $895m.

Creganna designs and manufactures minimally invasive delivery and access devices, which can be used in a wide range of therapies.

The Irish company provides services to medical device original equipment manufacturers (OEMs) in around 30 countries worldwide.

Creganna's customers include around 400 companies, comprising medical device and life science firms, while it has design and manufacturing facilities in the US, South America, Europe and Asia. Last year, the company reported sales of around $250m.

"This transaction builds on our AdvancedCath acquisition and establishes TE as a leading supplier to the high-growth minimally invasive interventional segment."

Permira partner Mike Garland said: "This investment demonstrates our strategy to partner with market-leading, multi-national businesses with strong growth potential and support management teams to achieve their international growth ambitions, while at the same time create attractive returns for the Permira funds' investors.

"We will continue to look for opportunities to partner with innovative outsourcing businesses servicing the medical devices industry and we wish Creganna every success with its new strategic owner TE Connectivity."

Subject to regulatory approvals and other customary closing conditions, the deal is expected to complete in the second quarter of this year.

Following completion, the acquired business will be reported as part of TE's Industrial Solutions segment.

The sale of Creganna marks the second divestment managed by the global healthcare team in a few months and follows last years' sale of the aquatic health group Pharmaq to Zoetis.

TE Connectivity chairman and CEO Tom Lynch said: "The acquisition of Creganna Medical is part of our well-established strategy to expand our leadership position in harsh environment applications.

"This transaction builds on our AdvancedCath acquisition and establishes TE as a leading supplier to the high-growth minimally invasive interventional segment."