Teleflex Business Split: Medical + OEM Divisions Sold for Over $2 Billion

Teleflex recently announced that the company has signed a definitive agreement to sell its Original Equipment Manufacturer (OEM) business, Emergency Care division, and Interventional Urology division to two different acquirers. Intersurgical Ltd., a UK-based company specializing in the design and manufacture of anesthesia and respiratory care equipment, will take over the Emergency Care and Interventional Urology divisions. Meanwhile, Montagu, a London-based private equity firm focused on the mid-market, and Kohlberg, based in Mount Kisco, New York, will jointly acquire the OEM business. According to Teleflex, the total cash value of this transaction is $2.03 billion, with the final amount to be determined based on relevant adjustment terms at the time of closing.

According to the terms of the agreement expected to be completed in the second half of 2026, Teleflex will receive approximately $1.5 billion for its OEM business and $530 million for its acute care and interventional urology business. After comprehensive calculations and certain harvesting adjustments, Teleflex stated that the after-tax net proceeds are approximately $1.8 billion.

Portfolio Optimization for Driving Growth

Liam Kelly, Chairman, President, and CEO of Teleflex, commented that this sale executes the previously proposed strategy of optimizing the product portfolio and driving growth in core markets. "Today's announcement is the result of this work, establishing Teleflex as a more focused leader in medical technology, with highly complementary vascular access, interventional, and surgical businesses, while simplifying our global operating model and manufacturing footprint. Additionally, upon completion of these transactions, Teleflex will have greater flexibility to invest in innovation and compete in these priority markets. We are confident that Teleflex can achieve mid-single-digit growth while we simplify operations and focus on commercial excellence. We are also better positioned to return significant capital to investors," Kelly said.

In February of this year, Teleflex announced that it will spin off these three businesses into a new publicly traded company by 2026, tentatively named NewCo. According to PlasticsToday, Teleflex stated it will focus on enhancing its vascular access, interventional, and surgical businesses, and plans to strengthen these by acquiring all vascular interventional assets of Berlin-based Biotronik, with an expected cash payment of 760 million euros (792 billion dollars).

Teleflex Medical Original Manufacturer

Teleflex Medical OEM provides a range of vertically integrated services for medical technology companies, including product development, material selection, extrusion, and assembly. The product line includes diagnostic and interventional catheters, balloon catheters, and bioabsorbable sutures. Upon acquiring the division, Montagu and Kohlberg commented: "With seven state-of-the-art facilities in the United States, Mexico, and Ireland, the company supports a blue-chip customer base of global medical device companies through its sophisticated extrusion expertise, extensive product line, and vertically integrated operating model." Greg Stotts, the current President and General Manager of Teleflex Medical OEM, has been appointed CEO of the new company by the private equity firms. Stotts joined Teleflex in 2006.

Intersurgical stated that incorporating the Teleflex acute care and interventional urology teams will expand its product portfolio and strengthen its R&D and technological resources. In a preliminary statement, the company said, "The Teleflex acute care and interventional urology business will continue under the leadership of Intersurgical, with both organizations collaborating to ensure alignment and operational efficiency."

Teleflex stated that it plans to use the net proceeds from this transaction to return a significant amount of capital to shareholders through share buybacks and to pay down debt, enhancing its financial flexibility to support its growth strategy.

In the planning of the transaction, Centerview Partners LLC serves as the financial advisor, Simpson Thacher & Bartlett LLP serves as the legal advisor, and Joele Frank serves as the strategic communications advisor for Teleflex.