Teleflex expands its hemostatic product portfolio via Z-Medica acquisition, for $500M upfront
Oct. 28, 2020 5:30 PM ETTeleflex Incorporated (TFX)TFXBy: Vandana Singh, SA News Editor1 Comment
- Teleflex (NYSE:TFX) has agreed to acquire privately held Z-Medica, a manufacturer of hemostatic products, for an upfront cash payment of $500M, and up to an additional $25M in milestone payments.
- Teleflex acquired certain tax attributes, valued at ~$40M, in the transaction that are expected to result in future tax benefits.
- Liam Kelly, Chairman, President and CEO, said, “the acquisition of Z-Medica enables Teleflex to leverage strength in the hospital, EMS, and military call points, with differentiated products that complement the EZ-IO and EZPLAZ 1 product portfolio.”
- The transaction is expected to contribute between $60M-$70M of revenue and between $0.07-$0.15 in adjusted EPS in fiscal year 2021.Beyond 2021, the company expects the acquisition to deliver a high-single digit revenue growth profile and further accretion to adjusted earnings per share.
- The company intends to discuss this acquisition in more detail on its upcoming third-quarter 2020 earnings conference call scheduled to be held on Thursday, October 29, 2020 at 8:00 am ET.