Dive Brief:
- Teleflex has struck deals to sell its acute care, interventional urology and OEM businesses for a combined $2.03 billion, the company said Tuesday.
- Montagu and Kohlberg, two private equity firms, are buying the OEM business for $1.5 billion. Intersurgical, an anesthesia and respiratory care medtech company, is buying the acute care and interventional urology businesses for $530 million.
- Needham analysts said in a note to investors that the total sale price is at the low end of their estimates. Yet RBC Capital Markets analysts told investors they view the update positively.
Dive Insight:
Teleflex outlined plans to offload its acute care, interventional urology and OEM businesses in February. At the time, Teleflex was planning to spin the unit off to create an independent, publicly traded company. As Teleflex CEO Liam Kelly said at a Jefferies event last month, the company switched to focus on selling the units after inbound interest in buying the businesses exceeded his expectations.
The inbound interest has manifested in two deals. Montagu and Kohlberg have inked a carve-out deal to establish Teleflex Medical OEM as a standalone business. The OEM business develops and manufactures custom-engineered interventional catheter components and subassemblies for clients at seven sites in the U.S., Mexico and Ireland.
Teleflex expects to close the deal in the second half of 2026. The deal could be terminated if the parties fail to close the acquisition by Sept. 1, 2026, or Dec. 1, 2026, if they agree to an extension. Montagu and Kohlberg will pay Teleflex $90 million if the deal is terminated. RBC analysts said the sale price appears reasonable.
Separately, Intersurgical has struck a deal to add Teleflex’s acute care and interventional urology devices to its existing portfolio of medical devices. Intersurgical said the acquisition will give its customers access to a broader portfolio of anesthesia, airway management and urology devices while strengthening its R&D and technical support resources.
RBC analysts said the price “appears low, but is reasonable.” Needham analysts said Teleflex’s inability to secure a price above the low end of their expectations could reflect “the continued poor performance of UroLift.”
Teleflex acquired UroLift in 2017 by buying NeoTract for $725 million upfront. UroLift sales have fallen short of expectations. In 2022, the Centers for Medicare and Medicaid Services cut reimbursement rates for UroLift procedures performed in physician offices by 19% to 21%, phased over four years. Teleflex said in 2024 that UroLift faced “persistent end-market challenges within the U.S. office site of service.”
Selling the units will leave Teleflex focused on its vascular access, interventional and surgical businesses. The company picked the businesses as the focus of its ongoing operations because they serve attractive, primarily hospital-focused end markets. Teleflex framed the split as a way to simplify its operating model and manufacturing footprint.
