Analysis: What does the union of Medtronic and Covidien mean for medtech?
June 16, 2014 by MassDevice
Things got a lot more interesting in the medical device industry over the weekend when news broke Sunday that Medtronic is buying Covidien for a whopping $43 billion.
The union of Medtronic and Covidien, expected to close late this year or early in 2015, would create the world’s largest pure-play medical device company with enough scale to rival Johnson & Johnson’s medtech operation (the combined entity’s annual revenues would be about $27 billion, compared with J&J’s medtech top line of roughly $28 billion). Read more
Blockbuster: Medtronic in $43B deal to acquire Covidien
June 16, 2014 by Brad Perriello
Medtronic said yesterday that it agreed to acquire Covidien in a cash-and-stock deal worth nearly $43 billion.
The buyout, a so-called “inversion” deal, will allow Medtronic to lower its overall tax rate by re-incorporating in Ireland. But Medtronic CEO Omar Ishrak said main drivers were strategic. Read more
Hill-Rom to pay $250M for German OR infrastructure maker
June 16, 2014 by Brad Perriello
Hill-Rom Holdings said today that it agreed to put up $250 million in cash for the operating room infrastructure arm of Germany’s Trumpf Group.
Trumpf Medical, which makes OR items including surgical tables, surgical lighting and supply units, posted revenues of about $250 million during the last 12 months, according to a press release. Read more
Medtronic's OUS move becomes a political football | MassDevice.com On Call
June 17, 2014 by Arezu Sarvestani
MASSDEVICE ON CALL – Medtronic’s acquisition of Covidien has spurred hundreds (if not thousands) of articles, analyses and speculations but at least one political hopeful is using the blockbuster news to gain favor in Medtronic’s home state.
Minnesota Republican and candidate for governor Marty Seifert issued a press release on Sunday blaming the Obama Administration for chasing Medtronic out of the U.S. with the medical device tax. Seifert is running for office against incumbent Mark Dayton (D), who has held the governor’s office since 2011. Read more
Medtronic buyout holds $80M in golden parachutes for Covidien execs
June 17, 2014 by Brad Perriello
If the top executives at Covidien decide to leave the company after a $43 billion acquisition by Medtronic goes through, they’ll do it under a golden parachute worth a collective $80 million, regulatory filings show.
The top 5 “named executives” at Covidien, led by chairman, president & CEO Joe Almeida, are in line for an average payout of some $16 million if they elect to depart after the deal’s consummation, slated for the end of this year or early next year. Read more
