Teleflex, a global provider of medical technology products, has entered into a definitive agreement to sell SSI Surgical Services (SSI) business to a privately-owned multi-service line healthcare company for approximately $25m.
SSI, with annual revenues of approximately $20m, offers a range of endoscopic surgical device services and sterile processing management services to help hospitals and surgery centers control costs and improve operational efficiency.
As a result of this agreement, SSI will be reflected in Teleflex’s future consolidated financial statements as a discontinued operation.
Although the transaction is expected to be slightly dilutive to 2010 earnings per share, the underlying strength of Teleflex’s existing businesses is expected to offset this dilution. As a result, Teleflex does not anticipate that the transaction will have an impact on its previously provided 2010 financial outlook.
The transaction is subject to customary closing conditions and is expected to close before the end of the first quarter of 2010.
Jeffrey Black, chairman and chief executive officer, said: “The decision to divest SSI was made following a review of our portfolio and it was determined that SSI was not a strategic fit. This allows us to continue to reallocate resources to our higher margin businesses.”