LIMERICK, Pa., May 27, 2010 (BUSINESS WIRE) --Teleflex Incorporated (NYSE: TFX), a leading global provider of medical
technology products, today announced that it has entered into a
definitive agreement to sell its Rigging Services business to Houston
Wire & Cable Company (NASDAQ: HWCC) for $50 million. The transaction is
subject to customary closing conditions and is expected to close by the
end of the second quarter of 2010.
Rigging Services, with annual revenues of approximately $80 million in
2009, offers a range of customized heavy-duty wire rope, wire and
synthetic rope assemblies, and related rigging hardware products.
"The decision to divest Rigging Services was made following a thorough
review and evaluation of a number of strategic alternatives and is
consistent with our strategy of divesting our non-medical assets. This
move allows us to continue to focus on the development of our portfolio
of quality medical products which improve outcomes and patient and
provider safety," stated Jeffrey P. Black, Chairman and Chief Executive
Officer.
This transaction is expected to reduce 2010 annualized earnings by
approximately $0.15 per diluted share, and cash flow from continuing
operations by approximately $10 million. As a result, the Company is
adjusting its financial estimates for 2010 from revenue of approximately
$1.9 billion to revenue of approximately $1.81 billion; diluted earnings
per share from continuing operations excluding special items from a
range of $4.10 to $4.25 to a range of $3.95 to $4.10; and cash flow from
continuing operations, exclusive of the impact of the adoption of
Accounting Standards Codification topic 860 "Transfers and Servicing",
from a range of $275 to $280 million to $265 to $270 million.
Rigging Services will be reflected as a discontinued operation in
Teleflex's future consolidated financial statements.
About Teleflex Incorporated
Teleflex is a global provider of medical technology products that enable
healthcare providers to improve patient outcomes, reduce infections and
support patient and provider safety. Teleflex, which employs
approximately 12,600 people worldwide, also has niche businesses that
serve segments of the aerospace and commercial markets with specialty
engineered products. 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 Rigging Services; the expected impact of the sale of Rigging
Services on our 2010 annualized earnings and cash flow from continuing
operations; and our updated 2010 revenue, adjusted earnings per share
and adjusted cash flow from operations guidance. 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
Vice President Investor Relations
610-948-2836