Tecomet has entered into a definitive agreement to buy Teleflex's OEM orthopedics business for $45.2m in cash.
Teleflex's orthopedics business includes the Beere Medical brand product line which provides surgical instruments used for orthopedic and spinal procedures, while SMD product line provides micro-machined products ranging from simple components to complex devices.
The SMD line products include implant systems (spinal, small bone, dental), mono- and poly-axial screws, flat or anatomic plates, straight or pre-bent rods, connectors and implant insertion instruments.
The transaction, which is expected to close during the third quarter of 2012, is subject to customary closing conditions.
The company said upon completion of the transaction, its OEM division will focus on expanding Deknatel and TFX OEM brands.
Teleflex chairman president and chief executive officer Benson Smith said the decision to divest the OEM orthopedics business is consistent with the company's strategy to focus on its branded products, invest in late-stage innovative technologies to support long-term growth, and expand both its gross and operating margins.
"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," Smith added.
Tecomet chief executive officer Bill Dow said, "We are very excited about the additional capabilities this acquisition adds to our portfolio and we welcome the talented and capable Kenosha, Wisconsin workforce to the Tecomet team."
