Teleflex buys Hotspur for $15M, sells ortho unit for $45M

Teleflex ($TFX) is making waves in the M&A world, buying catheter firm Hotspur Technologies for $15 million and selling its orthopedics unit to Tecomet for $45.2 million.

First, the acquisition. For $15 million, Teleflex gets Mountain View, CA-based Hotspur and its three 501(k)-cleared, CE marked catheters based on the company's VisioValve injection system. The devices are designed to make blocked-blood-vessel-treating procedures more efficient and cost effective, and Teleflex estimates the worldwide market for the techs to be about $1 billion.

As for the sale, Teleflex is unloading its OEM orthopedics business to Tecomet, saying it plans to use the $45.2 million cash influx to focus on its branded products and "invest in late-stage innovative technologies," like Hotspur's catheters, for instance. The company's ortho unit includes the Beere Medical and SMD product lines, offering surgical tools, micro-machines and spinal implants, among other devices. The unit generated about $36 million for Teleflex last year, the company said.

The two moves are all part of Teleflex's plan to expand its gross and operating margins with marketable techs, the company's CEO said. "The proceeds from the divestiture of this business, along with our ability to continue to generate cash from operations, will enable us to continue to execute our strategic plan for future growth," Benson Smith said in a statement.

- here's the release on the Hotspur buy
- check out the company's ortho sale statement

Suggested Articles

Akoya Biosciences raised $50 million to help boost its commercialization in research, drug development and clinical testing markets.

The dream of a comfortable, tabletop blood testing device, needing only a few drops taken from a finger and a handful of minutes, has now arrived.

Novartis is now teaming up with Amazon’s mammoth cloud computing division to overhaul its manufacturing, supply and business operations.