CEO: Omar Ishrak (head of new owner, Medtronic)
Based: Dublin, Ireland
2014 sales: $10.71 billion
2013 sales: $10.41 billion
% change: +4%

In case you weren't aware, Covidien is now part of Medtronic ($MDT) thanks to a megainversion deal that created a med tech behemoth. It is the fourth business group of Medtronic, and the only one not defined by a specific therapeutic area. Covidien's shareholders were handsomely rewarded by the acquisition; the stock's appreciation postannouncement increased the transaction's value from $43 billion to $50 billion.

In the two months since closure, Medtronic can point to some tangible gains from the new addition. These include the U.S. launch of the latest iteration of Covidien's Pipeline Flex embolization device to treat brain aneurysms, the FDA's PMA approval of the new group's VenaSeal closure system to treat varicose veins in the leg, and an expanded indication of the former rival's Protégé GPS peripheral stent for treating peripheral artery disease.

Medtronic said it bought Covidien in part due to its strong focus on surgical devices.

During FY 2014, its last fiscal year as an independent company, Covidien's surgical solutions sales were up 12% at constant exchange rates to $5.11 billion, led by strong growth in vessel sealing, interventional lung, synthetic mesh and gastrointestinal devices. Respiratory and patient care devices earned $3.87 billion (up 3%), driven by growth in patient monitoring. And vascular therapies devices, such as the Solitaire stent to treat stroke, contributed $1.68 billion (up 3%).

Upon closure of the Medtronic transaction, Covidien sold its clinical-stage drug-coated balloon program to Spectranetics ($SPNC) for $30 million to clear antitrust concerns. Medtronic already sells a drug-coated balloon of its own.

The parent company has inherited Covidien's Dublin, Ireland, headquarters to benefit from lower overseas corporate tax rates via a financial maneuver known as tax inversion. But officials from both sides insist the deal was driven by a common innovative culture and Covidien's strategic fit within Medtronic.

"The volume of products we'll be making and the relevance of what we'll be producing, in six to seven categories, they're the most purchased in hospitals across the world," former Covidien CEO José Almeida said in anticipation of the transaction's closure during the company's final quarterly earnings call. "So I think we will have a voice at the table in how we can do this more effectively and change how things are going today for the benefit of the patient, the provider, as well as shareholders."

-- Varun Saxena (email | Twitter)

For more:
Medtronic gains first FDA approval for Covidien device: Pipeline Flex for brain aneurysm
Medtronic and Covidien to close $43B merger today with Irish High Court approval
In a win for Spectranetics, Covidien's to-be-divested drug-coated balloon earns CE mark