To Record Non-Cash Goodwill and Intangibles Impairment Charges in Its Aerospace and Commercial Segments
LIMERICK, Pa.--(BUSINESS WIRE)--Jul. 20, 2009--
Teleflex Incorporated (the “Company”) announced today that it has signed
a definitive agreement to sell its Power Systems business (“Power”) to
Fuel Systems Solutions, Inc.Teleflex will receive cash proceeds of
$14.5 million. The transaction is subject to certain customary closing
conditions and is expected to be completed in the quarter ended
September 27, 2009 at which time Power will be reflected in the
Company’s future consolidated financial statements as a discontinued
operation.
The final sales price for Power is below the carrying value on the
Company’s balance sheet at June 28, 2009. Therefore, the Company will
recognize a non-cash, non-tax deductible goodwill impairment charge of
approximately $25 million to adjust the carrying value of these
operations to their estimated fair value. In addition, due to the
continuing uncertainty in the global economic climate the Company
periodically evaluates the carrying value of the goodwill and intangible
assets of its various reporting units. Considering the market conditions
impacting our Aerospace Cargo Container and Marine operations, the
Company determined that $6.7 million of non-tax deductible goodwill in
the Cargo Container operations and $2.3 million of indefinite lived
tradenames in the Marine operations were impaired. The goodwill charges
to be recorded represent 100 percent and 61 percent of the Aerospace and
Commercial Segments’ goodwill, respectively.
These non-cash special charges, totaling approximately $34 million, will
be recorded in the quarter ended June 28, 2009 and will reduce reported
results under U.S. Generally Accepted Accounting Principles (“GAAP”),
but will have no impact on liquidity or compliance with debt covenants.
The Company does not expect the above described transaction, the
subsequent reclassification of Power to discontinued operations, or
these special charges to have a material effect on its previously
announced annual earnings per diluted share from continuing operations
excluding special items and cash flow from continuing operations
guidance. The Company will further discuss the transaction on its
previously scheduled quarterly earnings conference call on July 27, 2009
and will provide pro-forma disclosures post-closing of the transaction.
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 12,800
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.
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 Power Systems,
the impact of the non-cash special charges on the Company’s GAAP
results, full-year earnings per-share excluding specials items and
full-year cash flow from continuing operations guidance. Actual results
could differ materially from those in these forward-looking statements.
Source: Teleflex Incorporated
Teleflex Incorporated
Jake Elguicze
Senior Director
Investor Relations
610-948-2836