Teleflex, a supplier of disposable and single use medical products for critical care and surgical applications, has entered into a definitive agreement with Houston Wire & Cable Company to sell Rigging Services business for $50m, as part of its plans to focus on the development of quality medical products portfolio.
Rigging Services, with annual revenues of approximately $80m in 2009, offers a range of customized heavy-duty wire rope, wire and synthetic rope assemblies, and related rigging hardware products.
Teleflex said that the transaction is expected to reduce 2010 annualized earnings by approximately $0.15 per diluted share, and cash flow from continuing operations by approximately $10m.
As a result, Teleflex is adjusting its financial estimates for 2010 from revenue of approximately $1.9bn to revenue of approximately $1.81bn.
Teleflex said that the Rigging Services will be reflected as a discontinued operation in Teleflex’s future consolidated financial statements.
Jeffrey Black, chairman and chief executive officer, said: “The decision to divest Rigging Services was made following a thorough review and evaluation of a number of strategic alternatives and is consistent with our strategy of divesting our non-medical assets. This move allows us to continue to focus on the development of our portfolio of quality medical products which improve outcomes and patient and provider safety.”
The transaction is subject to customary closing conditions and is expected to close by the end of the second quarter of 2010.