Signs Definitive Agreement to Acquire Vidacare Corporation
LIMERICK, Pa.--(BUSINESS WIRE)--Oct. 29, 2013--
Teleflex Incorporated (NYSE:TFX), a leading global provider of medical
devices for critical care and surgery, today announced it has entered
into a definitive agreement to acquire privately-held Vidacare
Corporation, the leading provider of intraosseous (IO), or inside the
bone, access devices.
Vidacare products incorporate a patented power driver and needle system
to access the intraosseous space for a variety of medical, diagnostic
and therapeutic purposes. Their products include the EZ-IO®
Intraosseous Vascular Access System, the OnControl™ Bone Marrow System
and the OnControl™ Bone Access System. Vidacare’s proprietary devices
have become the recognized technology standard and are used in a broad
range of applications including vascular access, emergency medicine,
oncology and spinal surgery.
“Teleflex’s strategy is to invest in innovative products and
technologies that can meaningfully enhance clinical efficacy, patient
safety and comfort, reduce complications and lower the overall cost of
care,” said Benson Smith, Chairman, President and CEO. “The acquisition
of Vidacare, an industry leader with a high gross margin profile, will
expand our comprehensive vascular access product portfolio with a
defining technology that can provide either a bridge to longer term
access devices such as a central venous catheter, or a rapid, less
expensive, and lower risk alternative for difficult vascular access when
long-term central lines are not necessary.”
The EZ-IO® Intraosseous Vascular Access System gives
immediate, stable and secure vascular access via the intraosseous space
of the bone, where marrow is located and where blood and stem cells
originate. The intraosseous space is the body’s largest non-collapsible
vein that provides a route for infusion of fluids and essential
medications into the central circulatory system as quickly as
traditional intravenous (IV) lines. EZ-IO® is used by a vast
majority of U.S. advanced life support ambulances and U.S. Emergency
Departments, as well as the U.S. Military when vascular access is
difficult to obtain in emergent, urgent, or medically necessary cases.
The OnControl™ Bone Marrow System provides the first significant
advancement in bone marrow biopsies and aspirations in more than 50
years, offering patients and clinicians a vastly improved procedure
option with significantly lower pain and exceptional quality core
samples.
The OnControl™ Bone Access System provides rapid and safe access to
vertebrae during spinal surgery procedures with increased precision in
needle placement and shorter surgical procedure times.
The transaction, which Teleflex intends to initially fund with
borrowings under its revolving credit facility, is valued at $262.5
million, net of cash acquired. The acquisition is subject to customary
closing conditions, including receipt of certain regulatory approvals,
and is expected to be completed late in the fourth quarter of 2013.
Based on the anticipated date of closing, the acquisition is not
expected to significantly impact Teleflex’s 2013 revenue or adjusted
earnings per share expectations. The transaction is expected to
contribute approximately $68 million to $72 million of revenue and
approximately $0.10 to $0.15 in adjusted earnings per share in fiscal
year 2014, excluding non-recurring purchase accounting items and other
acquisition and integration related costs.
The Company intends to discuss this acquisition in more detail on its
upcoming third quarter 2013 earnings conference call scheduled to be
held on Wednesday, October 30, 2013 at 8:00am ET.
Brown Brothers Harriman & Co. is acting as financial advisor and Simpson
Thacher & Bartlett LLP is acting as legal counsel to Teleflex in the
transaction.
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 11,500 people worldwide and serves
healthcare providers in more than 140 countries. Additional information
about Teleflex can be obtained from the company's website at teleflex.com.
Forward-Looking Statements
This press release contains forward-looking statements, including, but
not limited to, statements relating to the expected impact of the
acquisition on Teleflex’s 2013 and 2014 revenues and adjusted earnings
per share results and the expected completion date of the acquisition.
Actual results could differ materially from those in these
forward-looking statements due to, among other things, unexpected
expenditures in connection with the effectuation of the acquisition;
costs and length of time required to comply with legal requirements and
regulatory approvals applicable to certain aspects of the transaction,
unanticipated difficulties in connection with customer reaction to the
transaction; and other factors described in Teleflex's filings with the
Securities and Exchange Commission.
Source: Teleflex Incorporated
Teleflex Incorporated
Jake Elguicze
Treasurer and Vice
President, Investor Relations
610-948-2836