Teleflex completes strategic divestiture of OEM business for $1.5B
The company said it remains committed to its capital deployment priorities, including debt reduction of USD 800 million and completing its USD 1 billion share repurchase authorization.
Teleflex Incorporated, an American provider of medical technologies, has announced that it has completed the previously disclosed divestiture of its OEM business to Montagu and Kohlberg for USD 1.5 billion in cash.
The close of the OEM transaction marks a milestone in Teleflex's transformation strategy, sharpening the company's focus on the commercial excellence of its continuing businesses, according to a press release.
The divestiture strengthens Teleflex's financial flexibility and positions it to accelerate innovation and drive sustainable, profitable growth while returning significant capital to shareholders. Further, it allows the OEM business to benefit from dedicated resources to build on its established capabilities as an independent company under new ownership, the company said.
The company said it remains committed to its capital deployment priorities, including debt reduction of USD 800 million and completing its USD 1 billion share repurchase authorization. Consistent with this commitment, Teleflex intends to utilize the net proceeds from the close of the OEM strategic divestiture to return significant capital to shareholders through debt paydown and share repurchases, enhancing its financial flexibility to support its growth strategy.
Under the terms of the agreement, Teleflex estimates after tax proceeds of approximately USD 1.25 billion for its OEM business.
