Teleflex (NYSE:TFX) announced that it completed the divestiture of a significant portion of its respiratory business to Medline Industries.
Wayne, Pa.-based Teleflex announced last month that it agreed to sell a significant portion of its respiratory business to Medline for $286 million, reduced by $12 million of working capital to be retained by Teleflex. The respiratory product lines being divested to Medline include Teleflex’s Hudson RCI products oxygen and aerosol therapy, active humidification, non-invasive ventilation and incentive spirometers, which together generated $139 million in revenue in 2020.
The company expected the divested respiratory product lines to contribute net revenue equal to the previous year’s $139 million for 2021. Teleflex expects 2021 headwinds for revenues between $28 million and $32 million and adjusted EPS between 10¢ per share and 15¢ per share. The company maintains its current 2021 adjusted EPS guidance range, having announced restructuring plans in April’s first-quarter earnings report.
According to a news release, Teleflex intends to use the proceeds from the divestiture to pay down debt, augmenting its financial flexibility to support its growth strategy.