Teleflex to Focus More on Medical

Teleflex Inc has agreed to sell its rigging services business to Houston Wire & Cable for $50 million to focus on medical technology products, and cut its full-year outlook. The sale is expected to reduce Teleflex's 2010 earnings by about 15 cents a share, and revenue by about $90 million, Teleflex said in a statement.

The rigging services business supplies heavy-duty wire rope, wire and synthetic rope assemblies, and related rigging hardware products.Teleflex said its two rigging service businesses, Southwest Wire Rope and Southern Wire, had revenues of about $80 million in 2009.

"The decision to divest Rigging Services was made following a thorough review and evaluation of a number of strategic alternatives and is consistent with our strategy of divesting our non-medical assets. This move allows us to continue to focus on the development of our portfolio of quality medical products which improve outcomes and patient and provider safety," states Jeffrey P. Black, Chairman and Chief Executive Officer.

The companies expect the deal to close before the end of the second quarter.