Teleflex (NYSE: TFX)
(NYSE: TFX)
this week completed the previously announced acquisition of Palette Life Sciences.
The Wayne, Pennsylvania-based company first announced the acquisition in July. Under the terms of the agreement, Teleflex bought Palette for an upfront cash payment of $600 million at closing, with additional consideration of up to $50 million upon the achievement of certain commercial milestones.
The acquisition boosts Teleflex’s interventional urology platform which includes its UroLift system. Palette develops a non-animalized stabilized hyaluronic acid (NASHA) spacer and tissue bulking products. The company estimates standalone revenues of approximately $56 million in 2023.
Teleflex said in a news release that it expects to the acquisition to be approximately 25¢ dilutive to adjusted earnings per share. For 2024, the transaction is expected to deliver a high-teems to low 20% revenue growth profile and be approximately 35¢ dilutive to adjusted earnings per share. It is expected to be increasingly accretive to adjusted EPS thereafter.
When the company announced the acquisition in July, Teleflex President and CEO Liam Kelly said the transaction fell in line with the company’s strategy to acquire assets “that are accretive to Teleflex’s growth rate.” He also that that Palette is expected to meaningfully contribute to growth in the coming years.
Shares in TFX were down 3.23% to $192.88 apiece in mid-morning trading.