Teleflex announces plan to separate its businesses
Teleflex to create a new, independent publicly traded company consisting of its Urology, Acute Care, and OEM businesses. Remaining units and recently announced acquisition expected to remain. The post Teleflex announces plan to separate its businesses appeared first on MedTech Intelligence.
Teleflex recently announced it will pursue plans to separate its existing Urology, Acute Care, and OEM businesses into a new, independent, publicly traded company. According to reports, the new entity includes business holdings with approximately $1.4 billion in revenue in 2024 and expects to benefit from a simplified operating model, increased management focus, and a tailored investment and capital allocation strategy.
“The decision to pursue this separation was driven by our active portfolio management process and focus on driving shareholder value,” said Liam Kelly, Teleflex’s Chairman, President and Chief Executive Officer. “We believe [a new company] will emerge poised to deliver greater value via its enhanced ability to identify, invest in, and capitalize on the opportunities unique to its end markets.”
Reports suggest the remaining Teleflex business will be restructured to include its recently announced acquisition of Biotronik’s Vascular Intervention business and will focus on attractive, high-growth end markets addressing emergent procedures performed primarily in the hospital setting across the Intensive Care Unit, Emergency Department, Catheter Lab, and Operating Room. With this acquisition and the remaining portfolio of products, Teleflex expects to expand its breadth throughout the hospital, with leading market positions and opportunities for growth across three core product categories – vascular access, interventional, and surgical.
Kelly stated, “Following the separation, [the remaining business] will be well-positioned to accelerate growth in attractive, primarily hospital-focused, emergent end markets, with a simplified operating model, streamlined manufacturing footprint and increased management focus.” The restructured company, according to reports includes approximately $2.1 billion in revenue in 2024, according to company reports.
A company press release suggests, “The transaction is designed to optimize the positioning of both companies in order to better meet the needs of patients and customers and maximize value for shareholders,” and the transaction is intended to take the form of a distribution of newly issued shares of the new company to shareholders and is expected to be completed mid-2026.
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