TE Connectivity (NYSE:TEL) said today that it agreed to pick up Irish medical device maker Creganna Medical for $895 million in cash.
Cregganna, which is owned by private equity shop Permira Funds, posted sales of $250 million last year, Schaffhausen, Switzerland-based TE Connectivity said.
“We expect our interventional sales post Creganna will increase to well over $300 million,” TE Connectivity president Terrence Curtin said on a conference call with analysts today.
“The acquisition of Creganna Medical is part of our well-established strategy to expand our leadership position in harsh environment applications,” chairman & CEO Tom Lynch said in prepared remarks. “This transaction builds on our AdvancedCath acquisition and establishes TE as a leading supplier to the high-growth minimally invasive interventional segment. Our existing medical product offering, coupled with these acquisitions, positions TE with the broadest range of products and technologies serving this high-growth space.
“We look forward to welcoming Creganna’s talented team to TE,” Lynch said. “The combined team will bring significant engineering expertise and industry depth to create highly engineered solutions for OEMs globally.”
“We are pleased to be joining TE Connectivity to continue our journey to become the leading supplier of minimally invasive medical device delivery and access solutions for interventional medicine. With Permira’s support, we have been able to focus our efforts on critical markets, make the necessary investments and achieve strong results over the last few years. Now we are ready to take the next step in the evolution of the business. In addition to Permira, I’d like to thank the more than 2,000 staff throughout the world whose commitment has enabled Creganna to advance and be true to our medical device customers, physicians and patients that depend on the work we do,” Creganna CEO Chip Hance added.
TE Connectivity said it expects the deal to add 3¢ to its adjusted earnings per share in the 1st year after the deal closes, which is expected to occur during the 3rd quarter.
Chip Hance, CEO of Creganna Medical, added: “We are pleased to be joining TE Connectivity to continue our journey to become the leading supplier of minimally invasive medical device delivery and access solutions for interventional medicine. With Permira’s support, we have been able to focus our efforts on critical markets, make the necessary investments and achieve strong results over the last few years. Now we are ready to take the next step in the evolution of the business. In addition to Permira, I’d like to thank the more than 2,000 staff throughout the world whose commitment has enabled Creganna to advance and be true to our medical device customers, physicians and patients that depend on the work we do.”
Morgan Stanley & Co LLC was TE’s financial adviser, while Davis Polk & Wardwell LLP was the outside counsel. Piper Jaffray advised Permira, with Skadden, Arps, Slate, Meagher & Flom LLP as legal advisers.
Material from Reuters was used in this report.
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