Teleflex Sells Marine Business for $121.6 Million
Teleflex Incorporated, a leading global provider of medical technology products, on March 23, 2011 announced that it has sold its Marine business to an affiliate of H.I.G. Capital, LLC for $121.6 million, consisting of $101.6 million in cash proceeds, the buyer’s assumption of approximately $15.5 million in liabilities related to the business and a $4.5 million subordinated note from the buyer.
“Today we took another step towards achieving our strategic objective of becoming a pure-play medical technology company and continuing to focus on the development of our portfolio of quality medical technology products. As a result of this transaction, our medical technology products are expected to represent approximately 90% of our total revenues for 2011,” stated Benson F. Smith, Chairman, President and Chief Executive Officer. Added Smith, “Proceeds from this transaction will be used to continue to reduce outstanding debt and further invest in our medical platform.”
Marine, which generated net revenues of approximately $195 million during 2010, is a leading global provider of steering and throttle controls and engine and drive assemblies for the recreational marine market.
This transaction is expected to reduce 2011 annual revenue, adjusted cash earnings per share, and cash flow from operations by $185 million, $0.45 per diluted share, and $20 million, respectively. As a result, the company is adjusting its financial estimates with respect to forecasted 2011 revenue from a range of $1.81 billion to $1.84 billion to a range of $1.625 billion to $1.655 billion; adjusted cash earnings per share from a range of $4.95 to $5.15 to a range of $4.50 to $4.70; and cash flow from continuing operations from $250 million to $230 million.
The Marine business will be reflected as a discontinued operation in Teleflex’s future consolidated financial statements.
SOURCE: Teleflex Incorporated
Teleflex Incorporated
Jake Elguicze
Vice President Investor Relations
610-948-2836
