Teleflex Inc. (NYSE:TFX) announced a definitive agreement to sell its aerospace business for $280 million as it takes steps toward becoming a pure-play medical device maker.
"Since 2007, we have been executing a strategy to transform Teleflex from a cyclical, diversified-industrial conglomerate into a pure-play medical technology company," president & CEO Benson Smith said in prepared remarks.
Teleflex will sell its cargo systems and container aerospace business to a subsidiary of AAR Corp. (NYSE:AIR) in a deal expected to close by the end of this year, according to a press release.
Shares of Teleflex stock were up 3 percent to $57.05 in late morning trading today.
"The proceeds from the divestiture of these businesses, along with our ability to continue to generate cash from operations, will enable us to further reduce our outstanding debt, as well as provide Teleflex with substantial resources to expand our market presence through prudent, strategic acquisitions," Smith said.
Smith took over the corner office in January after the abrupt departure of Jeffrey Black, who resigned by mutual agreement with the company’s board.
Teleflex recently signed a deal to sell its intra-aortic balloon catheters through hospital group purchasing organization Premier.