TE Connectivity buys Creganna for $895m

4 April 2016 (Last Updated April 4th, 2016 18:30)

Swiss designer and manufacturer of connectivity and sensor solutions TE Connectivity has completed the acquisition of Ireland's Creganna Medical Group for $895m.

Swiss designer and manufacturer of connectivity and sensor solutions TE Connectivity has completed the acquisition of Ireland's Creganna Medical Group for $895m.

The companies entered into a definitive agreement regarding this deal in February this year.

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

"Combining Creganna with TE's existing medical business establishes TE as a leader in the attractive minimally-invasive interventional segment of the medical device market."

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 had reported sales of around $250m.

TE Connectivity chairman and CEO Tom Lynch said: "Creganna's products are used in life-saving medical treatments and surgical procedures where the highest levels of quality, reliability and performance are essential.

"Combining Creganna with TE's existing medical business establishes TE as a leader in the attractive minimally-invasive interventional segment of the medical device market.

"TE now has the most complete product and capability offering in the industry, and is a fully integrated strategic supplier to major OEMs."

The acquired business section of Creganna will be inducted as a part of TE's industrial solutions segment.

TE's existing manpower of 7,000 product development engineers assigned to the medical segment will gain more than 225 product development engineers after the acquisition.

TE's adjusted earnings per share is expected to be augmented by $0.03 in the first full fiscal year and will subsequently boost TE's revenue growth and earnings before interest, taxes, depreciation and amortisation margins.

Morgan Stanley served as TE's financial advisor and the outside counsel was Davis Polk and Wardwell during the acquisition.