Covidien has entered into a definitive agreement to purchase a manufacturer of ventilators, Newport Medical Instruments.
Under the agreement, Covidien will purchase all of the capital stock of Newport Medical for approximately $108m.
The transaction including receipt of certain regulatory approvals is scheduled to be completed in the second quarter of 2012.
Covidien said assuming a second quarter 2012 closing, it expects the transaction not to have a material impact on its fiscal 2012 sales.
Covidien respiratory and monitoring systems president Robert White said Newport’s products and technology complement the company’s portfolio of respiratory solutions and will broaden its ventilation platform for patients.
Covidien said once the transaction has been completed, it will report the Newport Medical business as part of its airway and ventilation product line.