Teleflex announces a $263 million deal to purchase privately-held Vidacare Corp. as the medical device company’s 3rd-quarter profits soar.
Teleflex (NYSE:TFX) plans to spend $262.5 million to snap up privately-held Vidacare Corp., a Shavano Park, Texas-based company that makes inside-the-bone access devices.
Limerick, Pa.-based Teleflex said the transaction, which will be financed through its revolving credit line, is expected to close during the 4th quarter. Company officials estimated the deal would contribute some $68 million to $72 million to Teleflex’s top line during its fiscal 2014 year.
“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,” Teleflex CEO Benson Smith said in a prepared release.
Vidacare products use a power driver and needle system to access the intraosseous space for a variety of medical, diagnostic and therapeutic purposes, Teleflex officials said. The company’s products include the EZ-IO Intraosseous Vascular Access System, the OnControl Bone Marrow System and the OnControl Bone Access System.
In conjunction with the deal, Teleflex reported strong earnings results for the 3rd quarter, which were boosted by another acquisition.
Read More at: http://www.massdevice.com/news/teleflex-buys-vidacare-263-million-q3-profits-soar
