LIMERICK, Pa.--(BUSINESS WIRE)--Oct. 15, 2007--Teleflex
Incorporated (NYSE: TFX) today announced the signing of an agreement
to sell its business units that design and manufacture automotive and
industrial driver controls, motion systems and fluid handling systems
to Kongsberg Automotive Holding ASA, (KOA) a leading global automotive
supplier in a cash transaction valued at $560 million. Financing for
the transaction is fully committed. The transaction is subject to
regulatory and other customary approvals and is expected to be
completed by year end.
With annual revenues of approximately $855 million, the business
units to be divested, Teleflex Automotive, Teleflex Industrial and
Teleflex Fluid Systems, are all part of the Teleflex Commercial
Segment. These businesses employ over 8,000 people in 34 manufacturing
sites worldwide.
"In the past two weeks, Teleflex has entered into two transactions
that clearly redefine its portfolio. Two weeks ago, we completed the
acquisition of Arrow International expanding our Medical Segment to
become the largest part of the company's revenues and operating
profits," stated Jeffrey P. Black, chairman and chief executive
officer. "With this divestiture, the Commercial Segment is focused in
businesses that have significant market position, brand recognition,
and opportunities to provide aftermarket products and services. These
two transactions create an overall Teleflex portfolio of businesses
positioned to deliver improved overall operating margins, reduced
cyclicality and significant prospects for future growth."
Added Black, "We are very pleased to be transitioning these
businesses to a well respected industry leader that serves similar
customers with a single focus on technologies for the global
automotive and industrial markets. Kongsberg recognized that these
businesses have strong management teams, a well-established customer
base and a manufacturing footprint that can strengthen their global
market position and core product areas."
After the close of this transaction, the Commercial Segment, which
has historically been the largest segment in terms of revenues, will
represent approximately 20 percent of the company's revenues. The
remaining Commercial businesses will provide marine driver controls
and related products, power and vehicle management systems and rigging
services to a range of commercial markets.
As a result of the signing of this agreement, the businesses to be
divested will be reflected as a discontinued operation in the
company's consolidated financial statements beginning in the fourth
quarter. The transaction is expected to result in a gain to be
recorded at closing. The company intends to use the net proceeds to
pay down debt.
Goldman, Sachs & Co. is providing financial advisory services to
Teleflex in the transaction.
About Kongsberg Automotive ASA
Kongsberg Automotive Holding (KOA) develops, manufactures and
markets systems for gearshift, clutch actuation, seat comfort,
stabilising rods, couplings and components. KOA, headquartered in
Kongsberg Norway, has annual sales of approximately NOK 3 billion
(approximately US $560 million). Leading customers include DAF,
Mercedes-Benz, Opel, Peugeot/Citroen, Renault, Saab, Scania, Toyota
and Volvo. KOA has manufacturing activities in Norway, Sweden,
England, Poland, USA, Mexico, Brazil, Korea and China plus R&D centres
in Norway, Sweden and the United States. Additional customer support
offices are located in France, Germany and Japan.
About Teleflex Incorporated
Teleflex is a diversified company with pro forma annual revenues
taking into account the acquisition of Arrow International of more
than $3 billion. The company designs, manufactures and distributes
quality-engineered products and services for the medical, commercial,
and aerospace markets worldwide, providing innovative solutions for
customers around the world. Additional information about Teleflex can
be obtained from the company's website at www.teleflex.com.
Caution Concerning Forward-Looking Information:
This press release contains forward-looking statements, including,
but not limited to, statements relating to the expected completion
date of the sale, expected gains or losses resulting from
divestitures, and expected improvement in operating margins. Actual
results could differ materially from those in these forward-looking
statements due to, among other things, inability to sell businesses at
prices, or within time-periods, anticipated by management; unexpected
expenditures in connection with the effectuation of a sale, costs and
length of time required to comply with legal requirements applicable
to certain aspects of the transaction, unanticipated difficulties in
connection with customer reaction to the program, changes in market
conditions, and other factors described in Teleflex's filings with the
Securities and Exchange Commission.
CONTACT: Teleflex Incorporated
Julie McDowell, 610-948-2836
Vice President, Corporate Communications
SOURCE: Teleflex Incorporated