LIMERICK, Pa.--(BUSINESS WIRE)--Mar. 2, 2009--
Teleflex Incorporated (“Teleflex” or the “Company”) announced today that
it has signed a definitive agreement to sell to General Electric Company
(“GE”) its 51 percent share of Airfoil Technologies International -
Singapore Pte. Ltd. (ATI-Singapore), a joint venture between GE and
Teleflex. Teleflex will receive $300 million for the sale of its joint
venture interest and plans to use the net proceeds primarily to pay down
debt. The transaction is subject to receipt of various regulatory
approvals and customary closing conditions and is expected to close by
the end of the first quarter.
As a result of this agreement, ATI will be reflected in the Company's
future consolidated financial statements as a discontinued operation.
ATI revenues of approximately $250 million are comprised of both repair
and replacement component revenues. The business generates free cash
flow to Teleflex of approximately $30 million, and has a tax rate of
approximately 6%. The transaction is expected to result in a pre-tax
gain on sale of over $250 million. The Company expects a debt-to-total
capital ratio below 50% after the application of net proceeds to debt
repayment. Teleflex will provide pro-forma disclosures post-closing of
the transaction in accordance with required guidelines and intends to
update its annual guidance at that time.
“We have enjoyed our long-term partnership with GE in this venture and
are pleased to have structured a transaction that allows us to further
reduce our outstanding debt and focus on our important growth
objectives,” stated Jeffrey P. Black, chairman and chief executive
officer. “We are also pleased to be transitioning the ownership of ATI
to an industry leader with strong customer relationships.”
Teleflex and GE have also entered an agreement that will permit Teleflex
to transfer its ownership interest in the remaining ATI business to GE
by the end of 2009.
ATI-Singapore started operations in 1998 and has become a leader in the
repair of cold section compressor airfoils with industry-leading
turnaround time and excellent quality. The facility services all GE
commercial aviation, marine and industrial engines, all CFM56 engines as
well as Pratt & Whitney and Honeywell components. Located in Loyang
Industrial Park, ATI-Singapore has about 535 employees who repair more
than two million compressor airfoils a year.
About Teleflex Incorporated
Teleflex (NYSE:TFX) is a diversified company that designs, manufactures
and distributes quality engineered products and services for the
medical, aerospace and commercial markets worldwide. Teleflex employs
approximately 14,200 people worldwide who focus on providing innovative
solutions for customers. Additional information about Teleflex can be
obtained from the company's website at www.teleflex.com.
About GE Aviation
GE Aviation, an operating unit of General Electric Company (NYSE:GE), is
a world-leading provider of commercial and military jet engines and
components as well as integrated digital, electric power, and mechanical
systems for aircraft. GE Aviation also has a global service network to
support these offerings. For more information, visit us at www.ge.com/aviation.
Additional Notes:
Free cash flow is defined as cash flow from operations less capital
expenditures and minority interest dividend payments to partners.
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 of ATI-Singapore, expected gain on sale for this transaction
and expected debt-to-total capital ratio after applying net proceeds to
debt repayment. 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; and other factors described in Teleflex's filings with the
Securities and Exchange Commission.
Source: Teleflex Incorporated
Teleflex Incorporated
Jake Elguicze
Senior Director,
Investor
Relations
610-948-2836