Teleflex To Divest Certain Respiratory Assets To Medline For $286M - Teleflex (NYSE:TFX)

Teleflex Incorporated TFX has agreed to sell a significant portion of its Respiratory business to Medline Industries Inc for $286 million in cash, reduced by $12 million in working capital not transferring to Medline.
The divested product lines include oxygen and aerosol therapy, active humidification, non-invasive ventilation, and incentive spirometers.
The products had generated $139 million in revenue in 2020.
The transaction is expected to close in the third quarter of 2021.
Teleflex estimates a revenue headwind of $28 million - 32 million and adjusted EPS dilution of $0.10 - $0.15 in 2021, net of a manufacturing services agreement that it plans to enter into with Medline upon the initial closing of the sale transaction.
The Company will use the divestiture proceeds to pay down debt.
Price Action: TFX shares closed at $393.24 on Monday.