Covidien (NYSE:COV) continued to blaze the acquisitions trail, announcing a definitive agreement to acquire Newport Medical Instruments for $108 million.
Costa Mesa, Calif.-based Newport Medical is a ventilator systems maker with products on the market in the U.S. and more than 115 countries worldwide, according to a press release.
"This acquisition is consistent with Covidien’s strategy to expand into adjacencies and invest in product categories where it can develop a global competitive advantage," Covidien’s respiratory & monitoring system president Robert White said in prepared remarks. "Newport’s products and technology complement the company’s current portfolio of respiratory solutions and will broaden our ventilation platform for patients around the world, particularly in emerging markets."
Covidien doesn’t expect the merger to have any effect on its 2012 earnings, according to a press release.
It’s the 2nd buyout this week for Covidien, which confirmed on Monday that it would acquire pulmonary device maker superDimension for $300 million plus possible earnouts in a deal expected to close during the 2nd quarter.
The device maker recently posted a record-breaking quarter with adjusted gross margins of 58.8% for the 3 months ended Dec. 24, 2011, 1.2 points higher than during the same period in 2010.
Covidien also upped its 2012 fiscal guidance, forecasting 3% to 5% sales growth. Its previous guidance was about a point lower.
