Teleflex has completed a $2 billion cash purchase of Arrow International, a Reading, Pa.-based manufacturer of catheters and other cardiac products.
Shareholders unanimously approved the merger of the two organizations on Thursday, Sept. 20. Under terms of the transaction, Arrow shareholders will receive a cash payment of $45.50 for each outstanding share of Arrow common stock.
"Completing the Arrow acquisition is a significant milestone in our strategy to position Teleflex as a diversified company defined by its medical business," commented Jeffrey P. Black, chairman of the board and CEO of Teleflex in a press release. "Combining these businesses creates a $1.4 billion global medical technology business with a leadership position in disposable products for critical care and surgery that will represent more than 45 percent of Teleflex revenues and approximately 70 percent of segment operating profits in 2008."
Teleflex Medical, based in North Carolina, employs more than 11,000 employees worldwide in more than 20 countries, while its parent corporation Teleflex has annual revenues of more than $3.1 billion and employs 23,000 people.
According to Teleflex, synergies from the transaction could reach an estimated $70 million to $75 million from the acquisition, as a result of lower administrative and infrastructure expenses and enhanced operational efficiencies.
The company said at this time the Arrow brand name will remain on products, but over time they will add the Teleflex Medical company name.