Teleflex Incorporated (TFX) Agrees to Sell SSI Surgical Services Inc.
LIMERICK, Pa.--(BUSINESS WIRE)-- Teleflex Incorporated, a leading global provider of medical technology products, today announced that it has entered into a definitive agreement to sell its SSI Surgical Services Inc. ("SSI") business to a privately-owned multi-service line healthcare company for approximately $25 million. The transaction is subject to customary closing conditions and is expected to close before the end of the first quarter of 2010.
SSI, with annual revenues of approximately $20 million, offers a range of endoscopic surgical services and sterile processing management services to help hospitals and surgery centers control costs and improve operational efficiency.
As a result of this agreement, SSI will be reflected in Teleflex's future consolidated financial statements as a discontinued operation. Although this transaction is expected to be slightly dilutive to 2010 earnings per share, the underlying strength of Teleflex's existing businesses is expected to offset this dilution. As a result, Teleflex does not anticipate this transaction will have an impact on its previously provided 2010 financial outlook.
"The decision to divest SSI was made following a review of our portfolio and it was determined that SSI was not a strategic fit. This allows us to continue to reallocate resources to our higher margin businesses," stated Jeffrey P. Black, chairman and chief executive officer.
About Teleflex Incorporated
Teleflex is a global provider of medical technology products that enable healthcare providers to improve patient outcomes, reduce infections and support patient and provider safety. Teleflex, which employs approximately 12,700 people worldwide, also has niche businesses that serve segments of the aerospace and commercial markets with specialty engineered products. Additional information about Teleflex can be obtained from the company's website at www.teleflex.com.
This press release contains forward-looking statements, including, but not limited to, statements relating to the expected completion date of the sale of SSI; the impact of the transaction on our 2010 earnings per share; and the expected performance of our underlying businesses in 2010. Actual results could differ materially from those in these forward-looking statements due to, among other things, inability to sell businesses at prices, or within time-periods, anticipated by management; unexpected expenditures in connection with the effectuation of a sale; costs and length of time required to comply with legal requirements applicable to certain aspects of the transaction, unanticipated difficulties in connection with customer reaction to the program; and other factors described in Teleflex's filings with the Securities and Exchange Commission.