Teleflex (NYSE:TFX) said it agreed to pony up about $276 million in cash for laryngeal mask maker LMA International.
The deal calls for the Limerick, Pa.-based medical device company to shell out S$343.5 million for Singapore-based LMA, according to a press release.
LMA posted sales of $123.9 million last year, Teleflex said.
Teleflex will also pick up LMA’s Intavent Direct Ltd. and its LMA-branded laryngeal mask supraglottic airway business in the United Kingdom, Ireland and the Channel Islands, according to the release.
"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," chairman, president and CEO Benson Smith said in prepared remarks. "The addition of these businesses significantly strengthens and expands our global anesthesia product portfolio, providing opportunities with respect to key clinical U.S. and international call points, while also further strengthening our GPO relationships."
Teleflex said the acquisitions, expected to close during the 4th quarter, to add 3¢-4¢ to its adjusted earnings per share during fiscal 2012 and 35¢-40¢ in fiscal 2013.
"From a longer-term perspective, getting a more robust product pipeline is just an important gap that we need to fill," Smith told analysts during a conference call recently, citing Teleflex’s $80 million buyout of Semprus BioSciences in June and a $15 million deal for Hotspur in July.
Those buys were designed to add to its product pipeline, he said, adding that Teleflex would also look for "share enhancers" for its existing businesses – a niche the LMA deal seems to fulfill.
"We do expect and believe that we can find some other acquisitions within the confines of our current franchises, which I’ll describe as sort of ‘share enhancers’ that give us a much firmer position in some of our existing franchises," Smith said during the July 31 call.