Teleflex (NYSE:TFX) may be getting out of the orthopedic OEM business, but it’s still going strong with its other OEM businesses, as evidenced by a newly expanded facility in Jaffrey, N.H., the medical device company opened last week.
Research Triangle Park, N.C.-based Teleflex Medical OEM’s new plant, which employs about 318 workers, makes interventional catheters. The expansion is expected to add about 25 jobs to the plant, or roughly 8%.
The 10,000-square-foot expansion was prompted by increased demand, company officials told Medical Products Outsourcing.
"This investment in the Jaffrey facility enhances Teleflex Medical OEM’s ability to incorporate our industry-leading innovations into the global marketplace, and accommodate our customers’ needs for technologically-advanced medical devices and custom-engineered extrusions," GM Greg Forrest told the magazine.
In July, Teleflex sold off its OEM orthopedics business for $42.5 million to Tecomet, a medical device engineering shop based in Wilmington, Mass.
"The decision to divest the OEM orthopedics business is consistent with our strategy to focus on our branded products, invest in late-stage innovative technologies to support our long-term growth, and expand both our gross and operating margins," Teleflex chairman, president & CEO Benson Smith said at the time. "The proceeds from the divestiture of this business, along with our ability to continue to generate cash from operations, will enable us to continue to execute our strategic plan for future growth."
The New Hampshire operation isn’t the company’s only OEM business to expand. In April, Teleflex opened an OEM factory in Pleasant Prairie, Minn., taking over a 45,000-square-foot facility there where it expects to employ up to 50 workers.
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- Analogic (NSDQ:ALOG): Needham & Co. raises to "buy" rating from "hold" rating.
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- Hologic (NSDQ:HOLX): Zacks Equity Research reaffirms "neutral" rating, $21 price target.
- Medtronic (NYSE:MDT): Zacks Equity Research reaffirms "neutral" rating, $44 price target.
- St. Jude Medical (NYSE:STJ): TheStreet Ratings reiterates “buy” rating, “B” score.
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