Inc. has agreed to buy Arrow International Inc. for about
$2 billion in cash. The buyout underscores Teleflex''s
shift toward medical products in an effort to secure higher
profit margins as part of its restructuring process.
Arrow''s acquisition, Teleflex''s medical division''s annual
revenues will jump to $1.5 billion, about 45 per cent
of the overall company revenue. Arrow is based out of
Reading, PA, and makes disposable catheters and other
devices for cardiac and critically ill patients.
medical division will now trump the aerospace and commercial
divisions of Teleflex, with profile margins of about 20
per cent. Last year, the medical division booked $162
million in operating profit, about 18 per cent on revenues
of $859 million.
has seen two restructuring exercises since 2004, incurring
over $100 million in charges, of which about 40 per cent
apply to its medical division. The extremely diverse conglomerate
makes and distributes practically everything, from airline
cargo-handling systems to marine engine parts. Its fastest-growing
business, however, is the medical services wing, with
products such as breathing tubes and surgical instruments.
will pay $45.50 a share in cash for Arrow, marking a 20
per cent premium to Arrow''s closing share price Friday.