U.S. News

Teleflex to Buy Arrow International for $2 Billion


Diversified manufacturer Teleflex agreed to buy Arrow International for about $2 billion to strengthen its position as a global supplier of disposable medical products, the companies said Monday.

Teleflex also said it hired Goldman Sachs to evaluate strategic alternatives for businesses in its commercial segment.

Arrow shareholders will receive a cash payment of $45.50 per share, representing a premium of 20% over Arrow's closing share price of $37.79 on Friday.

The deal was approved by the boards of both companies and is subject to approval by Arrow shareholders.

Arrow manufactures a range of disposable catheters and related products for critical and cardiac care.

Limerick, Pennsylvania-based Teleflex, which has annual revenues of more than $2.5 billion, said the deal will make its medical technology business its largest source of revenue and profitability.

Teleflex expects the deal to close by the end of the year and hurt 2007 financial results. It said it will provide details on the extent of the expected dilution to earnings after the deal closes.

The company expects the deal to add meaningfully to its earnings by 2009.

Related Tags