“This acquisition is consistent with Covidien’s strategy to expand into adjacencies and invest in product categories where it can develop a global competitive advantage.”
We’re getting that deja vu all over again as Covidien announces another acquisition. Covidien calls itself a “recognized innovator in patient monitoring and respiratory care devices”, so perhaps its not all that surprising to see it acquiring Newport Medical Instruments, Inc., which designs and manufactures what are described as “dependable, life improving ventilators that are affordable for caregivers worldwide” in a press release.
Covidien will acquire all of the outstanding capital stock of Californian company Newport Medical, which is privately-owned, 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.
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.
“This acquisition is consistent with Covidien’s strategy to expand into adjacencies and invest in product categories where it can develop a global competitive advantage,” said Robert J. White, President, Respiratory & Monitoring Systems, Covidien. “Newport’s products and technology complement the Company’s current portfolio of respiratory solutions and will broaden our ventilation platform for patients around the world, particularly in emerging markets.”
Source: Covidien, Business Wire