Covidien to sell European AI business.

Covidien, a maker of medical devices, pharmaceutical ingredients and imaging products, is selling its Lille, France-based adult incontinence business to a private French company as part of its strategy to focus resources on its core healthcare units, the company has announced. The incontinence business, which produces adult diapers and had fiscal 2007 revenue of $109 million, is expected to be renamed Lille Healthcare. The trans action is slated to close in the second quarter of 2008.

The divestment follows Covidien's agreement to sell its U.S. retail products business--which includes a sizable private label diaper business--to First Quality Enterprises for $335 million. This sale is expected to close this quarter.