The critical-care medical technology company Teleflex, Limerick, Pa., announced it will acquire devicemaker Arrow International, a Reading, Pa.-based company specializing in disposable cardiac-care products, for $2 billion in cash.
The deal, according to a news release issued by both companies, will add complementary products to Teleflexs existing anesthesia, respiratory, surgery and urology product lines.
Teleflex Chairman and Chief Executive Officer Jeffrey Black said the expanded medical-technology segment is expected to become the companys largest source of profit, generating $1.5 billion in revenue and a 20% profit margin beginning in 2008. We expect the transaction to be meaningfully accretive to Teleflexs earnings by 2009, Black said in the news release.
Both Arrow and Teleflex board members unanimously approved a proposal to pay Arrow shareholders $45.50 for each share of outstanding stock. The offer represents a 20% premium on the companys most recent closing share price, according to the news release. Under the proposed deal, which still needs regulatory and Arrow shareholder approval, Teleflex Medical President Ernest Waaser would head the combined medical business. The acquisition is expected to be completed by year-end. -- by Shawn Rhea