Teleflex to divest endoscopic business for higher-margin focus
This article was originally published in Clinica
Teleflex is set to sell its SSI Surgical Services business to an unnamed “privately-owned multi-service line healthcare company” for around $25m. The transaction comes after Teleflex (Limerick, Pennsylvania) reviewed its medical portfolio and determined that SSI was no longer a strategic fit. Teleflex will now shift the resources from this business to its core critical care unit, which brought in sales of $258.7m (+4%) for the fourth quarter of 2009. SSI develops endoscopic surgical services and sterile processing management services designed to help hospitals and surgery centres control costs. The business has annual revenues of approximately $20m. Teleflex expects the underlying strength of its remaining businesses to offset the dilution of the SSI deal, resulting in no negative impact on its 2010 financial outlook. The company estimates total revenues in excess of $1.92bn for full-year 2010 and diluted earnings-per-share in the range of $4.10-4.25.