Covidien plc. (COV: Quote) announced a definitive agreement to acquire Newport Medical Instruments, Inc, which is privately-owned and based in Costa Mesa, CA, for approximately $108 million.
The transaction, subject to customary closing conditions, including receipt of certain regulatory approvals, is expected to be completed in the second calendar quarter of 2012.
Newport Medical is a physician-led company, focused solely on the design and manufacture of dependable, life improving ventilators. Newport Medical's products are sold in the United States and more than 115 countries worldwide.
Assuming a closing in the second calendar quarter of 2012, Covidien said that it does not expect this transaction to have a material impact on its fiscal 2012 sales, operating margin or earnings per share.
Once the transaction has been completed, Covidien will report the Newport Medical business as part of its Airway & Ventilation product line in the Medical Devices segment.
by RTT Staff Writer
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