Teleflex to acquire Vascular Solutions for $1B

Teleflex has inked a deal to acquire Vascular Solutions for $1 billion, picking up devices for minimally invasive coronary and peripheral vascular procedures and gaining entry into those markets.

Teleflex operates across a range of areas, offering cardiac care, respiratory, interventional access and surgical products. The Vascular Solutions acquisition will boost Teleflex’s vascular and interventional divisions. The deal is slated to close in the first half of next year.

“[Vascular Solutions has] established a strong franchise focused on interventional cardiology and interventional radiology which complements Teleflex’s existing businesses,” said Teleflex CEO Benson Smith in the statement. “Importantly, while we believe Vascular Solutions has compelling growth opportunities as they continue to build their business with their existing product portfolio, we look forward to potential longer-term tailwinds as we benefit from their robust R&D pipeline and our international distribution network moving forward.”

While Teleflex has notched a couple of FDA clearances this fall—for a midline catheter and a central venous catheter—the company has been navigating a rough patch, having recalled a mucosal atomizer, tracheostomy tube and 47,000 intra-aortic balloon catheter kits this year. Teleflex reeled in $456 million in the third quarter, up 2.7% year-over-year, and logged $1.8 billion for 2015, down 1.6% from the previous year.

In February, the company’s board approved a restructuring program to cut as much as $44 million in costs and “improve operating efficiencies” that would include layoffs, relocations and outsourcing. This followed the company’s previous “manufacturing footprint realignment” plan, which sought to do much the same. The company anticipated savings of between $26 and $31 million.

Smith noted that the deal would meet the company’s M&A goals, while also adding products that:

  • Allow for "synergy generation"
  • Provide a superior clinical benefit to existing alternatives and a cost benefit to hospitals
  • Have long product life cycles that benefit from patent protection
  • Enable the company to further improve its financial profile