LIMERICK, Pa., Mar 22, 2011 (BUSINESS WIRE) --
Teleflex Incorporated (NYSE: TFX), a leading global provider of medical
technology products, today announced that it has sold its Marine
business to an affiliate of H.I.G. Capital, LLC for $121.6 million,
consisting of $101.6 million in cash proceeds, the buyer's assumption of
approximately $15.5 million in liabilities related to the business and a
$4.5 million subordinated note from the buyer.
"Today we took another step towards achieving our strategic objective of
becoming a pure-play medical technology company and continuing to focus
on the development of our portfolio of quality medical technology
products. As a result of this transaction, our medical technology
products are expected to represent approximately 90% of our total
revenues for 2011," stated Benson F. Smith, Chairman, President and
Chief Executive Officer. Added Smith, "Proceeds from this transaction
will be used to continue to reduce outstanding debt and further invest
in our medical platform."
Marine, which generated net revenues of approximately $195 million
during 2010, is a leading global provider of steering and throttle
controls and engine and drive assemblies for the recreational marine
market.
This transaction is expected to reduce 2011 annual revenue, adjusted
cash earnings per share, and cash flow from operations by $185 million,
$0.45 per diluted share, and $20 million, respectively. As a result, the
company is adjusting its financial estimates with respect to forecasted
2011 revenue from a range of $1.81 billion to $1.84 billion to a range
of $1.625 billion to $1.655 billion; adjusted cash earnings per share
from a range of $4.95 to $5.15 to a range of $4.50 to $4.70; and cash
flow from continuing operations from $250 million to $230 million.
The Marine business will be reflected as a discontinued operation in
Teleflex's future consolidated financial statements.
About Teleflex Incorporated
Teleflex is a leading global provider of specialty medical devices for a
range of procedures in critical care and surgery. Our mission is to
provide solutions that enable healthcare providers to improve outcomes
and enhance patient and provider safety. Headquartered in Limerick, PA,
Teleflex employs approximately 11,750 people worldwide and serves
healthcare providers in more than 130 countries. The company also has
niche businesses which produce specialty engineered products for the
aerospace market. For additional information about Teleflex please refer
to www.teleflex.com.
Forward-looking information
This press release contains forward-looking statements, including, but
not limited to, statements relating to the expected contribution of
sales of our medical technology products to our 2011 total revenues; the
expected impact of the sale of the Marine business on our 2011 annual
revenue, adjusted cash earnings per share and cash flow from operations;
and our updated 2011 revenue, adjusted cash earnings per share and cash
flow from operations guidance. Actual results could differ materially
from those in these forward-looking statements due to, among other
things, conditions in the end markets we serve, customer reaction to new
products and programs, our ability to achieve sales growth, price
increases or cost reductions; changes in the reimbursement practices of
third party payors; our ability to realize efficiencies and to execute
on our strategic initiatives; changes in material costs and surcharges;
market acceptance and unanticipated difficulties in connection with the
introduction of new products and product line extensions; product
recalls; unanticipated difficulties in connection with the consolidation
of manufacturing and administrative functions; unanticipated
difficulties, expenditures and delays in complying with government
regulations applicable to our businesses, including unanticipated costs
and difficulties in connection with the resolution of issues related to
the FDA corporate warning letter issued to Arrow; the impact of
government healthcare reform legislation; our ability to meet our debt
obligations; changes in general and international economic conditions;
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