Teleflex
(NYSE: TFX)
announced today that it agreed to sell its Acute Care, Interventional Urology and OEM businesses for a combined $2.03 billion.
The company entered into definitive agreements to sell the units to two separate buyers. Intersurgical Ltd, a UK-based medical device maker, acquired Acute Care and Interventional Urology. Private equity firms Montagu and Kohlberg acquired the OEM business.
Company officials expect the deals to be completed in the second half of 2026, subject to customary regulatory approvals and other closing conditions.
Shares of TFX ticked up 10% to $131.94 apiece in early-morning trading on the news.
In February, Teleflex announced its plans to separate the businesses into a publicly traded company. However, it has now opted to sell the units. The remaining businesses include the Teleflex Vascular Access, Interventional and Surgical businesses. Liam Kelly, Teleflex chair, president and CEO, will continue to lead the remaining Teleflex businesses in the same positions.
Kelly says the transactions should drive enhanced value for shareholders and position the company to return significant capital to investors.
“Over the past year, we have executed a clear strategy to optimize our portfolio and best position Teleflex for the future, with a focus on driving growth across our core critical care and high acuity hospital markets,” said Kelly. “Today’s announcement is a result of this work and establishes Teleflex as a more focused medical technologies leader, with highly complementary businesses in Vascular Access, Interventional, and Surgical, and a simplified global operating model and manufacturing footprint. Further, following these transactions, Teleflex will have increased flexibility to invest in innovation and compete in these priority markets.
“Teleflex is committed to ensuring a smooth transition for employees, customers and other stakeholders. We are confident that Intersurgical, and Montagu and Kohlberg are the right buyers for these businesses, well-positioned to provide them with the strategic investment and resources to execute their strategies and deliver for patients.”
Details of the Teleflex transactions and what the business looks like
The remaining businesses registered approximately $2.1 billion in 2024 revenue (pro forma with Teleflex’s recent acquisition of Biotronik’s Vascular Interventions business). Teleflex’s outgoing units brought in about $1.4 billion in 2024 revenue. Altogether, the company reported more than $3 billion in its most recent annual report, making it the 41st-largest medtech company in the world, according to Medical Design & Outsourcing’s 2025 Big 100.
Teleflex’s board approved both agreed transactions. The company expects to complete them in the second half of 2026, subject to customary approvals and conditions.
Under the terms of the agreements, Teleflex receives approximately $1.5 billion for its OEM business and $530 million for Acute Care and Interventional Urology. On a combined basis, the company anticipates approximately $1.8 billion in net proceeds after tax.
The company plans to use the proceeds to return significant capital to shareholders through share repurchases. It also intends to pay down debt, enhancing its financial flexibility to support its growth strategy.
Teleflex’s board also authorized a share repurchase program for up to $1 billion in common stock. It plans to fund this program primarily using proceeds from the sale transactions.
“The sale transactions and this authorization are a testament to the Board’s confidence in our ability to advance our strategic objectives and drive growth across our remaining businesses,” said Kelly. “We have a longstanding commitment to return capital to shareholders and will continue to review our capital allocation strategy with a focus on maximizing long-term value creation.”
