The deal allows Medline to acquire Teleflex’s Hudson RCI respiratory products
The acquired products reported $139m in revenue in 2020. (Credit: bertholdbrodersen from Pixabay)
Medline Industries has agreed to purchase a significant portion of respiratory business from Teleflex for $286m in cash.
Under the deal, the company will acquire Teleflex’s Hudson RCI respiratory products, including oxygen and aerosol therapy, active humidification, non-invasive ventilation and incentive spirometers.
The acquired products, which reported $139m in revenue in 2020, will complement Medline’s respiratory portfolio to better meet the requirements of the market.
Teleflex aims to use the divestiture proceeds to reduce debt and boost its financial flexibility to support its growth strategy.
Teleflex chairman, president and CEO Liam Kelly said: “Following a comprehensive review of our strategy and core capabilities, our board of directors and management team decided that divesting a significant portion of our respiratory business will enable Teleflex to focus further on executing in our core market segments to drive long-term sustainable growth and increase shareholder value.”
The transaction will allow Medline to add two manufacturing facilities to its portfolio of over 20 existing plants in North America.
The Arlington Heights facility in Illinois manufactures respiratory sterile water products, and the Nuevo Laredo facility in Mexico produces a variety of respiratory consumables.
Medline president Andy Mills said: “Medline has a long history of investing in key market areas to deliver new opportunities and efficiencies to healthcare providers. The acquisition brings one of the most admired respiratory brands into our world-class portfolio of products.”
Subject to customary regulatory approvals and other closing conditions, the deal is expected to be completed in the third quarter of 2021.
Upon the completion of the deal, around 1,000 employees from the acquired business will Medline.
Guggenheim Securities is serving as financial advisor to Teleflex, while Holland & Knight is acting as legal counsel. Sidley Austin is acting as legal counsel for Medline.
In addition, Medline has announced plans to construct new warehouses in Malaysia, Korea, and China to meet the demand from both increased growth and an expanded respiratory offering in Asia.