Covidien (NYSE:COV) this week consummated the divestiture of its Confluent Surgical line of surgical sealants and shields, handing the unit over to Integra LifeSciences(NSDQ:IART) in a deal worth up to $265 million.
Integra LifeSciences paid about $235 million in cash up-front and Covidien may be entitled to another $30 million tied to performance measures, according to a company statement.
Covidien in October 2013 agreed to sell the Confluent Surgical business, which it acquired in 2006 for $245 million. The divestiture is aimed at honing the company’s focus on "global strategic priorities," the company has said.
Covidien said it expects the deal to be dilutive by "several cents" to its fiscal 2014 earnings per share, offset by "the underlying strength of Covidien’s existing businesses."
"As a result, Covidien does not anticipate this transaction will have a material impact on its fiscal 2014 outlook," according to the release.
Serial inventor and entrepreneur Amar Sawhney founded Confluent Surgical in 1998 and invented the technology behind its flagship DuraSeal product in the early 2000s. Confluent, which Sawhney launched with a $1 million seed round in 1998, started clinical trials on a dural sealant in 2002, shortly after raising another $20 million in a Series B round.