Teleflex sells acute care and urology businesses for $2.03 billion

Teleflex Incorporated, a leading global provider of medical technologies, has entered into definitive agreements to sell the company’s Acute Care, Interventional Urology and OEM businesses to two buyers, Intersurgical Ltd. with respect to Acute Care and Interventional Urology, and Montagu and Kohlberg with respect to OEM, for a combined total of $2.03 billion in cash, subject to certain closing adjustments.

“Over the past year, we have executed a clear strategy to optimize our portfolio and best position Teleflex for the future, with a focus on driving growth across our core critical care and high acuity hospital markets,” says Liam Kelly, Teleflex’s chairman, president, and chief executive officer. “Today’s announcement is a result of this work and establishes Teleflex as a more focused medical technologies leader, with highly complementary businesses in Vascular Access, Interventional, and Surgical, and a simplified global operating model and manufacturing footprint. Further, following these transactions, Teleflex will have increased flexibility to invest in innovation and compete in these priority markets. We are confident in mid-single-digit growth for Teleflex as we streamline our operations and focus the organization on commercial excellence, enabling us to drive enhanced value for our shareholders and deliver for our customers and the patients they serve. We are also better positioned to return significant capital to our investors.”

Kelly continues, “Teleflex is committed to ensuring a smooth transition for employees, customers and other stakeholders. We are confident that Intersurgical, and Montagu and Kohlberg are the right buyers for these businesses, well-positioned to provide them with the strategic investment and resources to execute their strategies and deliver for patients.”

Transaction details

The transactions, which were approved by Teleflex’s Board of Directors, are expected to be completed in the second half of 2026, subject to customary regulatory approvals and other closing conditions.

Under the terms of the agreements, Teleflex will receive proceeds of approximately $1.5 billion for its OEM business and $530 million for its Acute Care and Interventional Urology businesses, in each case subject to certain closing adjustments. On a combined basis and subject to certain closing adjustments, Teleflex will receive net proceeds of approximately $1.8 billion after tax.

Teleflex primarily intends to use the net proceeds to return significant capital to shareholders through share repurchases and pay down debt, enhancing its financial flexibility to support its growth strategy.

Share repurchase program

Teleflex also announced that its Board of Directors has authorized a share repurchase program for up to $1 billion of the company’s common stock. The program will primarily be funded with proceeds from the sale transactions.

“The sale transactions and this authorization are a testament to the Board’s confidence in our ability to advance our strategic objectives and drive growth across our remaining businesses,” Kelly says. “We have a longstanding commitment to return capital to shareholders and will continue to review our capital allocation strategy with a focus on maximizing long-term value creation.”

The timing, price, and actual number of shares of Common Stock that may be repurchased under the share repurchase authorization will depend on a variety of factors including the price, market conditions, any debt requirements and applicable law as well as actual timing of the close of each of the sale transactions. The repurchases may occur in open market transactions, in transactions structured through investment banking institutions, in privately negotiated transactions, by direct purchases of common stock or a combination of the foregoing. The share repurchase program does not require Teleflex to repurchase shares of its Common Stock, and it may be discontinued, suspended, or amended at any time, without prior notice.

Advisors

Centerview Partners LLC is serving as financial advisor, Simpson Thacher & Bartlett LLP is acting as legal counsel and Joele Frank is serving as strategic communications advisor to Teleflex.