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Teleflex to acquire LMA and the firm's line of laryngeal masks.

Teleflex has signed an agreement to purchase Singapore-based LMA International NV for 343.5 million Singapore dollars in cash, which at current exchange rates is approximately $276 million (U.S.). LMA makes anesthesia-related and emergency care devices; its main products are laryngeal masks--emergency airway management devices inserted into the pharynx when a patient is under anesthesia or otherwise in need of emergency airway management.

The proposed acquisition will expand Teleflex's anesthesia franchise, and potentially position the company well in the laryngeal masks market. LMA reported revenue of $123.9 million (U.S.) in its latest fiscal year ended Dec. 31, 2011.

Incorporated in Curacao in 1998, LMA is listed on the main board of the Singapore Exchange. LMA has offices in Jersey, Channel Islands and Singapore, as well as wholly owned manufacturing facilities in Utah and Malaysia, and subsidiaries with direct selling functions in the United States, Canada, Australia, New Zealand, Germany, Italy and Singapore.

The board of directors at both companies approved the purchase, which now is subject to LMA shareholder approval and other closing conditions.

Teleflex also has signed definitive agreements with shareholders of Intavent Direct Limited and affiliates to acquire their LMA-branded laryngeal mask supraglottic airway business and certain other products in the United Kingdom, Ireland and Channel Islands. The business reported revenue of $8.2 million in its latest fiscal year.

Collectively, the transactions are expected to be accretive to Teleflex's adjusted earnings per share by approximately 3 cents to 4 cents in fiscal 2012, and 35 cents to 40 cents in fiscal 2013, excluding non-recurring purchase accounting items and other acquisition and integration related costs.

"These acquisitions will be complementary to Teleflex's current anesthesia and respiratory businesses, creating a stronger, more diversified business segment with more than $530 million in combined annual sales," said Benson Smith, chairman, president and CEO of Teleflex. "The addition of these businesses significantly strengthens and expands our global anesthesia product portfolio, providing opportunities with respect to key clinical United States and international call points, while also further strengthening our group purchasing organization relationships."

Both transactions are expected to close in the fourth quarter of this year.

Based in Limerick, Pa., Teleflex produces products for the critical care market.

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Title Annotation:Top of the News
Publication:Medical Product Outsourcing
Geographic Code:9SING
Date:Sep 1, 2012
Words:370
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