Teleflex Completes Acquisition of Market Leader in Hemostatic Products

Rhea-AI Summary

Teleflex (NYSE:TFX) has successfully completed the acquisition of Z-Medica for $500 million, with a potential additional $25 million based on performance milestones. This strategic buy aims to enhance Teleflex's medical technology portfolio, specifically in hemorrhage control products, which are critical for healthcare providers. The acquisition is not anticipated to have a significant impact on 2020 revenue but is expected to contribute between $60 million and $70 million in revenue and $0.07 to $0.15 in adjusted EPS for 2021, with potential for high-single digit growth thereafter.

Positive

• Acquisition expected to generate $60 million to $70 million in revenue for FY 2021.
• Expected adjusted EPS contribution between $0.07 and $0.15 for FY 2021.
• Potential for high-single digit revenue growth beyond 2021.

Negative

• None.

WAYNE, Pa., Dec. 28, 2020 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE:TFX), a leading global provider for healthcare supplies and services, announced today that it has completed the previously announced acquisition of Z-Medica, LLC, an industry-leading manufacturer of hemostatic products.

On October 28, 2020, Teleflex announced a definitive agreement to acquire Z-Medica. Under the terms of the agreement, Teleflex will acquire Z-Medica for an upfront cash payment of $500 million at closing, and up to an additional $25 million upon the achievement of certain commercial milestones. Teleflex acquired certain tax attributes in the transaction that are expected to result in future tax benefits. Teleflex valued these tax attributes at approximately $40 million in arriving at our purchase price.

Based on the date of closing, the acquisition is not expected to significantly impact Teleflex’s 2020 revenue or adjusted earnings per share. The transaction is expected to contribute between $60 million and $70 million of revenue and between $0.07 and $0.15 in adjusted earnings per share in fiscal year 2021 (excluding non-recurring purchase accounting items and other acquisition and integration related costs). Beyond 2021, the Company expects the acquisition to deliver a high-single digit revenue growth profile and further accretion to adjusted earnings per share.

About Teleflex Incorporated
Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation – a relentless pursuit of identifying unmet clinical needs – to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.

Teleflex is the home of Arrow^®, Deknatel^®, Hudson RCI^®, LMA^®, Pilling^®, Rüsch^®, UroLift^®, and Weck^® – trusted brands united by a common sense of purpose.

About Z-Medica, LLC
Z-Medica, LLC, a Linden Capital Partners portfolio company, is a medical device manufacturer based in Wallingford, CT that is focused on the development, sale and marketing of innovative hemorrhage control products. For over a decade, Z-Medica has helped hospitals, militaries, law enforcement, first responders and consumers around the globe save lives and improve medical outcomes with their QuikClot® brand of products which are manufactured in the United States. For more information, visit http://www.QuikClot.com and http://www.Z-Medica.com. Follow us on Twitter @QuikClot and Facebook @QuikClotFans.

About Linden Capital Partners
Linden Capital Partners is a Chicago-based private equity firm focused exclusively on investing in the healthcare industry. Linden’s strategy is based upon three elements: i) healthcare specialization, ii) integrated private equity and operating expertise, and iii) strategic relationships with large corporations. Linden invests in middle market platforms across the medical products, specialty distribution, pharmaceutical, and services segments of healthcare. For more information, please visit www.lindenllc.com.

Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Any forward-looking statements contained herein are based on our management's current beliefs and expectations, but are subject to a number of risks, uncertainties and changes in circumstances, which may cause actual results or company actions to differ materially from what is expressed or implied by these statements. These risks and uncertainties are identified and described in more detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

Source
Teleflex Incorporated
Jake Elguicze
Treasurer and Vice President, Investor Relations
610-948-2836

FAQ

What is the value of the Teleflex acquisition of Z-Medica?

Teleflex acquired Z-Medica for $500 million, with an additional $25 million possible based on performance milestones.

When was the Teleflex acquisition of Z-Medica completed?

The acquisition was completed on December 28, 2020.

How will the acquisition of Z-Medica affect Teleflex's revenue?

The acquisition is expected to contribute approximately $60 million to $70 million to Teleflex's revenue in fiscal year 2021.

What impact will the Z-Medica acquisition have on Teleflex's earnings?

Teleflex expects the acquisition to contribute between $0.07 and $0.15 to its adjusted earnings per share for FY 2021.

What are the future revenue expectations following the Z-Medica acquisition?

Teleflex anticipates a high-single digit revenue growth profile from the Z-Medica acquisition beyond 2021.