Healthcare products company Covidien Ltd. (COV: Quote) announced Wednesday that Chairman, President and CEO Richard Meelia will retire, effective July 1. Jose Almeida, head of the company's medical device business, will take over as the new president, CEO, and director.
The Dublin, Ireland-based company noted that Meelia will continue to serve the company as the non-executive chairman for a period of one year to help in the transition.
"Rich Meelia has been a strong and highly effective leader, and his service as CEO is deeply appreciated. Under his leadership, Covidien has introduced a record number of innovative new products, realigned and strengthened its portfolio, significantly reduced costs, developed a deep bench of management talent and created increased value for shareholders," Lead Director Timothy Donahue said in a statement.
Meelia has served as CEO and a director of Covidien since it was spun off from parent company Tyco International Ltd. (TYC) in June 2007. He was elected as chairman later in October 2008.
Prior to that, Meelia was president of Tyco Healthcare since 1995. Tyco Healthcare was spun off and renamed as Covidien in June 2007. He earlier joined Kendall Healthcare Products Co., the foundation of the Tyco Healthcare business, as Group President in 1991.
Prior to joining Kendall, Meelia served as president of Infusaid, Inc., a division of Pfizer Hospital Products Group, after holding sales and marketing positions with the Pharmaseal and McGaw divisions of the American Hospital Supply Corp.
Incoming CEO Almeida has been serving since October 2006 as president of the medical devices business. Medical devices account for about 60 percent of Covidien's total annual revenues.
"Joe has an outstanding track record of achievement. His comprehensive knowledge of our business and his decisive management style make him uniquely qualified to lead Covidien into a new era of strong profitable growth," Donahue added.
Almeida also joined Covidien's predecessor company Tyco Healthcare in 1995 as director of manufacturing and corporate engineering. Since then he held several positions of increasing responsibility, including being vice president of European Manufacturing and vice president of Global Manufacturing, a position he held from 2000 to 2002.
Almeida left Tyco Healthcare in 2003 for Greatbatch Technologies, Inc., before returning to Tyco Healthcare in 2004 as president of the International business unit. Prior joining Tyco Healthcare, He was a director of Manufacturing in Acufex Microsurgical's American Home Products division, and a management consultant at Andersen Consulting (Accenture).
COV closed Tuesday's regular trading session at $51.09, up $0.22 on a volume of 5.89 million shares, higher than the three-month average volume of 5.72 million shares. In the past 52-week period, the stock has been trading in a range of $35.12 to $53.75.
by RTT Staff Writer
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