Teleflex Announces Intent to Separate into Two Publicly Traded Companies
Teleflex (NYSE:TFX) announced plans to separate into two independent publicly traded companies by mid-2026. The separation will be executed through a tax-free distribution of newly issued shares to shareholders.
The first company, RemainCo ($2.1B revenue in 2024), will focus on Vascular Access, Interventional, and Surgical businesses, targeting high-growth hospital-focused emergent markets. It's projected to deliver 6%+ constant currency revenue growth and double-digit EPS growth in the first year post-separation.
The second company, NewCo ($1.4B revenue in 2024), will comprise Urology, Acute Care, and OEM businesses. It's expected to generate low-single digit constant currency revenue growth with a mid-50% adjusted gross margin profile.
The separation aims to create two focused entities with simplified operating models, streamlined manufacturing footprints, and enhanced resource allocation. RemainCo will transition from 19 to 7 manufacturing facilities, with the remaining 12 transferring to NewCo.
Teleflex (NYSE:TFX) ha annunciato piani per separarsi in due aziende pubbliche indipendenti entro metà del 2026. La separazione sarà attuata attraverso una distribuzione esentasse di azioni di nuova emissione agli azionisti.
La prima azienda, RemainCo (2,1 miliardi di dollari di fatturato nel 2024), si concentrerà sui settori dell'accesso vascolare, interventistico e chirurgico, mirando a mercati emergenti focalizzati sugli ospedali ad alta crescita. Si prevede che genererà una crescita del fatturato in valuta costante superiore al 6% e una crescita a due cifre dell'EPS nel primo anno dopo la separazione.
La seconda azienda, NewCo (1,4 miliardi di dollari di fatturato nel 2024), comprenderà i settori dell'urologia, delle cure acute e delle attività OEM. Si prevede che genererà una crescita del fatturato in valuta costante a singola cifra bassa con un margine lordo rettificato medio del 50%.
La separazione mira a creare due entità focalizzate con modelli operativi semplificati, una produzione razionalizzata e un miglioramento dell'allocazione delle risorse. RemainCo passerà da 19 a 7 stabilimenti di produzione, mentre i restanti 12 saranno trasferiti a NewCo.
Teleflex (NYSE:TFX) anunció planes para separarse en dos empresas públicas independientes para mediados de 2026. La separación se llevará a cabo mediante una distribución libre de impuestos de acciones recién emitidas a los accionistas.
La primera empresa, RemainCo (2.1 mil millones de dólares en ingresos en 2024), se centrará en los negocios de acceso vascular, intervencionista y quirúrgico, apuntando a mercados emergentes enfocados en hospitales de alto crecimiento. Se proyecta que entregará un crecimiento de ingresos en moneda constante superior al 6% y un crecimiento de EPS de dos dígitos en el primer año posterior a la separación.
La segunda empresa, NewCo (1.4 mil millones de dólares en ingresos en 2024), comprenderá negocios de urología, cuidados agudos y OEM. Se espera que genere un crecimiento de ingresos en moneda constante de un solo dígito bajo con un perfil de margen bruto ajustado del 50% medio.
La separación tiene como objetivo crear dos entidades enfocadas con modelos operativos simplificados, una producción racionalizada y una mejor asignación de recursos. RemainCo pasará de 19 a 7 instalaciones de fabricación, mientras que las 12 restantes se transferirán a NewCo.
Teleflex (NYSE:TFX)는 2026년 중반까지 두 개의 독립적인 상장 회사로 분리할 계획을 발표했습니다. 분리는 주주들에게 새로 발행된 주식을 세금 없이 배포하는 방식으로 진행됩니다.
첫 번째 회사인 RemainCo (2024년 수익 21억 달러)는 혈관 접근, 중재 및 외과 비즈니스에 집중하며, 고성장 병원 중심의 신흥 시장을 목표로 합니다. 분리 후 첫 해에 6% 이상의 고정 환율 수익 성장과 두 자릿수 EPS 성장을 달성할 것으로 예상됩니다.
두 번째 회사인 NewCo (2024년 수익 14억 달러)는 비뇨기과, 급성 치료 및 OEM 비즈니스로 구성됩니다. 고정 환율 수익 성장률은 저단위 수치로 예상되며, 조정된 총 이익률은 중간 50% 수준이 될 것으로 보입니다.
이번 분리는 운영 모델을 단순화하고 제조 발자국을 간소화하며 자원 할당을 개선하여 두 개의 집중된 엔티티를 만드는 것을 목표로 합니다. RemainCo는 19개의 제조 시설에서 7개로 전환되며, 나머지 12개는 NewCo로 이전됩니다.
Teleflex (NYSE:TFX) a annoncé des plans pour se séparer en deux entreprises publiques indépendantes d'ici la mi-2026. La séparation sera réalisée par une distribution sans impôt d'actions nouvellement émises aux actionnaires.
La première entreprise, RemainCo (2,1 milliards de dollars de revenus en 2024), se concentrera sur les activités d'accès vasculaire, d'intervention et de chirurgie, visant des marchés émergents à forte croissance axés sur les hôpitaux. On prévoit qu'elle affichera une croissance des revenus en monnaie constante de plus de 6 % et une croissance à deux chiffres du BPA au cours de la première année suivant la séparation.
La deuxième entreprise, NewCo (1,4 milliard de dollars de revenus en 2024), comprendra les activités d'urologie, de soins aigus et d'OEM. On s'attend à ce qu'elle génère une croissance des revenus en monnaie constante à un chiffre bas avec un profil de marge brute ajustée d'environ 50 %.
La séparation vise à créer deux entités ciblées avec des modèles opérationnels simplifiés, des empreintes de fabrication rationalisées et une allocation des ressources améliorée. RemainCo passera de 19 à 7 installations de fabrication, tandis que les 12 restantes seront transférées à NewCo.
Teleflex (NYSE:TFX) gab bekannt, dass es plant, bis Mitte 2026 in zwei unabhängige börsennotierte Unternehmen zu trennen. Die Trennung wird durch eine steuerfreie Verteilung neu ausgegebener Aktien an die Aktionäre erfolgen.
Das erste Unternehmen, RemainCo (2,1 Milliarden Dollar Umsatz im Jahr 2024), wird sich auf die Bereiche Gefäßzugang, interventionelle und chirurgische Geschäfte konzentrieren und zielt auf wachstumsstarke, krankenhausfokussierte Schwellenmärkte ab. Es wird prognostiziert, dass es im ersten Jahr nach der Trennung ein Umsatzwachstum von über 6 % in konstanter Währung und ein zweistelliges EPS-Wachstum erzielen wird.
Das zweite Unternehmen, NewCo (1,4 Milliarden Dollar Umsatz im Jahr 2024), wird die Bereiche Urologie, Akutversorgung und OEM umfassen. Es wird erwartet, dass es ein niedriges einstelliges Umsatzwachstum in konstanter Währung mit einem angepassten Bruttomargenprofil von etwa 50 % erzielen wird.
Die Trennung zielt darauf ab, zwei fokussierte Einheiten mit vereinfachten Betriebsmodellen, optimierten Produktionsstandorten und verbesserter Ressourcenallokation zu schaffen. RemainCo wird von 19 auf 7 Produktionsstätten wechseln, während die verbleibenden 12 an NewCo übertragen werden.
- Tax-free distribution to shareholders
- RemainCo projected 6%+ constant currency revenue growth
- Expected double-digit EPS growth first year post-separation
- Streamlined manufacturing operations reducing from 19 to 7 facilities for RemainCo
- Mid-50% adjusted gross margin profile for NewCo
- NewCo expected to generate only low-single digit revenue growth
- Complex separation process requiring multiple regulatory approvals
- Significant restructuring and transition costs expected
- Execution risks in managing separation of manufacturing facilities
Insights
Teleflex's planned separation into two distinct public companies represents a significant strategic restructuring aimed at unlocking shareholder value through increased operational focus and market specialization. The tax-free spinoff will create:
- RemainCo (
$2.1 billion 2024 revenue): Focusing on high-acuity hospital procedures across Vascular Access, Interventional, and Surgical segments with projected6%+ constant currency growth - NewCo (
$1.4 billion 2024 revenue): Comprising Urology (including UroLift and Barrigel), Acute Care, and OEM businesses with initial low-single-digit growth potential
This separation offers several potential advantages. RemainCo will benefit from a dramatically simplified manufacturing footprint (reducing from 19 to 7 facilities) while maintaining complementary product portfolios addressing critical hospital procedures. The streamlined structure should enable more targeted R&D investment and potentially improve operational efficiency despite initial margin neutrality.
For NewCo, the separation provides dedicated management focus on recovering the UroLift franchise and expanding the promising Barrigel product line. The OEM business particularly stands to benefit from independence, as it can pursue customer relationships that might have presented conflicts under the combined structure.
However, investors should consider several execution risks. The lengthy timeline (mid-2026 completion) creates a prolonged period of organizational uncertainty. Leadership for NewCo remains undetermined, with an executive search just beginning. Additionally, separation costs and potential diseconomies of scale could pressure margins initially.
The capital structure implications also warrant attention. While RemainCo targets a net leverage ratio below 3.0x through 2026, the debt allocation between entities isn't fully detailed. Both companies will need to establish independent capital allocation strategies that balance growth investments against shareholder returns.
Historical precedents in medical device spinoffs suggest these transactions can create value when properly executed, but often face transitional challenges. The separation may also position either entity as a potential acquisition target in an industry experiencing ongoing consolidation.
Teleflex's decision to separate into two distinct companies represents a significant strategic pivot in the medical device landscape, where many competitors are pursuing consolidation rather than division. This separation creates specialized entities that may better address distinct healthcare market dynamics:
- RemainCo will focus on high-acuity hospital interventions (Vascular Access, Interventional, Surgical) where procedural volumes remain resilient even during healthcare spending fluctuations
- NewCo combines Urology, Acute Care, and OEM businesses that face different market dynamics and reimbursement challenges
From a competitive standpoint, RemainCo will face intense competition from larger, focused players. In vascular access, BD dominates with approximately
For NewCo, the UroLift franchise has struggled against Boston Scientific's competing Rezūm system and faces reimbursement headwinds. However, Barrigel represents a promising growth driver in radiation oncology with direct competition. The OEM business will benefit from independence, potentially expanding relationships with companies that previously viewed Teleflex as a competitor.
Clinically, the separation could accelerate innovation cycles as R&D resources become more focused. RemainCo's streamlined manufacturing (7 facilities versus 19 currently) should improve quality control and regulatory compliance for critical care devices where recalls carry significant consequences.
The healthcare provider landscape presents different challenges for each entity. RemainCo will face growing pressure from hospital system consolidation and value analysis committees demanding clinical and economic evidence. NewCo's UroLift business must navigate the shift toward ambulatory surgical centers while maintaining relationships with office-based urologists.
This separation follows similar moves by Zimmer Biomet (ZimVie spinoff) and Johnson & Johnson (Kenvue consumer health spinoff), though those separations involved more disparate businesses. The extended timeline (mid-2026 completion) suggests complex operational interdependencies that will require careful unwinding to maintain product quality and supply chain integrity.
- Teleflex to create a new, independent publicly traded company (“NewCo”) consisting of Teleflex’s Urology, Acute Care, and OEM businesses.
- Teleflex RemainCo (“RemainCo”) will consist of Teleflex’s Vascular Access, Interventional, and Surgical businesses – focusing on high-growth, high-acuity, primarily hospital-focused emergent end markets.
- Separation expected to position RemainCo to deliver
6% + constant currency revenue growth post-separation, to be accretive to Teleflex adjusted gross margin, initially neutral to Teleflex adjusted operating margin, and drive double-digit EPS growth in the first full year post separation. - Separation will position each company to accelerate its growth profile with a simplified operating model, streamlined manufacturing footprint, better allocation of resources and increased management focus.
- Transaction intended to take the form of a distribution of newly issued shares of NewCo to shareholders that is tax-free for U.S. tax purposes and is expected to be completed mid-2026.
WAYNE, Pa., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE:TFX), a leading global provider of medical technologies, today announced that following a comprehensive business portfolio evaluation, its Board of Directors has authorized Teleflex management to pursue a plan to separate the company’s Urology, Acute Care, and OEM businesses into a new, independent, publicly traded company via a distribution of newly issued shares of NewCo to shareholders that is tax-free for U.S. tax purposes.
“The decision to pursue this separation was driven by our active portfolio management process and focus on driving shareholder value,” said Liam Kelly, Teleflex's Chairman, President and Chief Executive Officer. “Following the separation, RemainCo will be well-positioned to accelerate growth in attractive, primarily hospital-focused, emergent end markets, with a simplified operating model, streamlined manufacturing footprint and increased management focus. We expect RemainCo to have increased flexibility to invest in and better compete in the markets in which it will operate with a focus on enhanced innovation. We believe NewCo will also emerge poised to deliver greater value via its enhanced ability to identify, invest in, and capitalize on the opportunities unique to its end markets. This transaction is designed to optimize the positioning of both companies in order to better meet the needs of patients and customers and maximize value for shareholders.”
Teleflex RemainCo to Sharpen Focus on High-Growth, High-Acuity End Markets
RemainCo, with approximately
- Vascular Access, offering devices that facilitate a variety of critical care therapies and other applications with a focus on helping reduce vascular-related complications. These products primarily consist of our Arrow branded catheters, catheter navigation and tip positioning systems, and our intraosseous access systems. Post-separation, Vascular Access will also include our emergency medicine portfolio, including our hemostatic products branded under our QuikClot trade name.
- Interventional, offering devices that facilitate a variety of applications to diagnose and deliver treatment of coronary and peripheral vascular disease. These products primarily consist of a variety of coronary catheters and structural heart support devices used by interventional cardiologists, interventional radiologists and vascular surgeons. The Interventional product category will also include the Biotronik Vascular Intervention business, significantly expanding our portfolio in both coronary and peripheral cath lab procedures1.
- Surgical, offering single-use and reusable devices designed for use in a variety of surgical procedures, primarily consisting of metal and polymer ligating clips, fascial closure surgical systems used in laparoscopic surgical procedures, percutaneous surgical systems, a powered bariatric stapler, and other surgical instruments used in ear, nose and throat and cardiovascular and thoracic procedures.
Following the separation, RemainCo is expected to generate constant currency revenue growth of
With this enhanced financial profile, RemainCo will have increased flexibility to better align its capital allocation philosophy and growth strategy. RemainCo will remain disciplined, planning to prioritize allocating capital to internal investment into high-ROI growth drivers, growth-accretive acquisitions to help RemainCo more effectively compete in highly innovative end markets, repaying debt as appropriate to optimize leverage profile, and continuing to return capital to shareholders via quarterly dividends and opportunistic share repurchases. RemainCo is targeting a net leverage ratio below 3.0x through 2026.
Liam Kelly will continue to lead RemainCo as its Chairman, President and CEO.
NewCo Will Have Undivided Management Focus to Unlock Potential in Urology, Acute Care, and OEM End Markets
NewCo, with approximately
- Urology, to include the company’s Interventional Urology and bladder management portfolios. Key brands and products include the UroLift System, a minimally invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia in men 45 years of age or older, Barrigel, the company’s hyaluronic acid gel-based rectal spacing product used in connection with radiation therapy treatment of prostate cancer, and the Rüsch brand of catheters and bladder management products.
- Acute Care, to include the majority of Teleflex’s Anesthesia product category, as well as the company’s Respiratory product category, portfolio of intra-aortic balloon pumps, and select other products. Anesthesia products will include our airway management portfolio consisting of laryngoscopes, supraglottic airways, and endotracheal tubes, as well as our pain management portfolio, consisting of epidurals, catheters and disposable pain pumps for regional anesthesia, designed to improve patients’ post-operative pain experience.
- OEM, focused on the design, manufacture, and supply of devices and instruments for other medical device manufacturers. The OEM segment specializes in custom extrusions, micro-diameter film-cast tubing, diagnostic and interventional catheters, balloons and balloon catheters, film-insulated fine wire, coated mandrel wire, conductors, sheath/dilator introducers, specialized sutures and performance fibers, bioabsorbable sutures, yarns and resins.
Following the separation, NewCo is expected to generate low-single digit constant currency revenue growth with a mid
Teleflex intends to initiate an executive search for key management positions at NewCo shortly. The NewCo Board of Directors, management and headquarters will be announced as they are finalized.
Transaction Details
The transaction is intended to take the form of a distribution of newly issued shares of NewCo to shareholders that is tax-free for U.S. tax purposes. The company expects the transaction to be completed mid-2026. The transaction is subject to satisfaction of customary conditions, including final approval from the Teleflex Board of Directors, filing and effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission, receipt of a tax opinion from Teleflex’s tax advisor, receipt of a private letter ruling from the Internal Revenue Service, satisfactory completion of financing, and receipt of other regulatory approvals. No assurance can be given regarding the form that a separation transaction may take or the specific terms or timing, or that a separation will in fact occur.
Advisors
Centerview Partners LLC is serving as financial advisor to Teleflex. Simpson Thacher & Bartlett LLP is acting as legal advisor to Teleflex.
Conference Call and Webcast
Teleflex separately reported today fourth quarter and full-year 2024 financial results and announced its entry into a definitive agreement to acquire substantially all of Biotronik’s Vascular Intervention business. The company will host a conference call at 8:00 am ET on Thursday, February 27, 2025 to discuss the results and today’s announcement.
To participate in the conference call, please utilize this link to pre-register and receive the dial-in information. The call can also be accessed through a live audio webcast on the company’s website, teleflex.com.
An audio replay of the call will be available beginning at 11:00 am Eastern Time on February 27, 2025, either on the Teleflex website or by telephone. The call can be accessed by dialing 1 800 770 2030 (U.S. and Canada) or 1 609 800 9909 (all other locations). The conference ID is 69028.
About Teleflex Incorporated
As a global provider of medical technologies, Teleflex is driven by our purpose to improve the health and quality of people’s lives. Through our vision to become the most trusted partner in healthcare, we offer a diverse portfolio with solutions in the therapy areas of anesthesia, emergency medicine, interventional cardiology and radiology, surgical, vascular access, and urology. We believe that the potential of great people, purpose driven innovation, and world-class products can shape the future direction of healthcare.
Teleflex is the home of Arrow™, Barrigel™, Deknatel™, LMA™, Pilling™, QuikClot™, Rüsch™, UroLift™ and Weck™ – trusted brands united by a common sense of purpose.
At Teleflex, we are empowering the future of healthcare. For more information, please visit teleflex.com.
References:
- Teleflex announced today that it has entered into a definitive agreement to acquire substantially all of the Vascular Intervention business of BIOTRONIK SE & Co. KG, which it expects to close by the end of the third quarter of 2025.
Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements about the company's plans to separate certain of its businesses into an independent company, the expected timetable for completing the transaction, the tax-free nature of the transaction, the future financial and operating performance of each company following the transaction, the benefits and synergies of the transaction, strategic and competitive advantages of each company, and future growth and other opportunities for each company. Actual results could differ materially from those in the forward-looking statements due to, among other things, any changes in or abandonment of the proposed transaction and our ability to satisfy the conditions to the proposed transaction; unanticipated costs and length of time required to comply with legal requirements and regulatory approvals applicable to the transaction; customer and shareholder reaction to the transaction; disruption from the transaction making it more difficult to maintain business and operational relationships; significant transaction costs; changes in general and international economic conditions, including fluctuations in foreign currency exchange rates; and other factors described or incorporated in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024.
CAUTION: Federal (USA) law restricts these devices for sale or use by or on the order of a physician.
Teleflex, the Teleflex logo, Arrow, Barrigel, Deknatel, LMA, Pilling, QuikClot, Rüsch, UroLift and Weck are trademarks or registered trademarks of Teleflex Incorporated or its affiliates in the U.S. and/or other countries. Other names are the trademarks of their respective owners. Refer to the Instructions for Use for a complete listing of the indications, contraindications, warnings, and precautions. Information in this document is not a substitute for the product Instructions for Use. Not all products may be available in all countries. Please contact your local representative.
© 2025 Teleflex Incorporated. All rights reserved.
Contacts:
Teleflex
Lawrence Keusch
Vice President, Investor Relations and Strategy Development
investor.relations@teleflex.com
610-948-2836
FAQ
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