Under the terms of the agreement, Covidien will receive an initial cash payment of $235m from Integra upon the closing of the transaction.

Additionally, Covidien may receive up to $30m, contingent upon the achievement of certain performance measures related to the transition of the Confluent Surgical business to Integra.

Covidien medical devices group president Bryan Hanson noted this transaction allows Covidien to better focus on its global strategic priorities.

"Based on Integra’s presence in neurosurgery and spine surgery combined with a strong portfolio of clinical evidence, we believe these products will thrive under Integra’s ownership. We express our sincere gratitude to our dedicated employees and the clinicians who have partnered with us throughout the years," Hanson added.

Confluent Surgical products include: DuraSeal, DuraSeal Exact/Xact, VascuSeal and SprayShield.

These products are part of the soft tissue repair category of Covidien’s medical devices business and generated approximately $65m in sales in fiscal 2012.

Assuming a closing on or before 31 March 2014, subject to receipt of regulatory approvals, Covidien expects the transaction to be several cents dilutive to fiscal 2014 earnings per share; however, the underlying strength of Covidien’s existing businesses is expected to offset this dilution.