Dive Brief:
- Teleflex will split into two publicly traded companies, with the new entity comprising its urology, acute care and OEM businesses. The remaining company will consist of the hospital-focused vascular access, interventional and surgical businesses.
- The separation positions each organization to accelerate growth under a simplified operating model and increased management focus, with a streamlined manufacturing footprint and better allocation of resources, Teleflex said in a Thursday announcement.
- In addition, Teleflex said it agreed to pay about 760 million euros (about $791 million) to acquire nearly all of Biotronik’s vascular intervention division. The company also announced the planned retirement of CFO Thomas Powell.
Dive Insight:
Teleflex’s flurry of changes come as it reported fourth-quarter revenue and a 2025 outlook that were weaker than expected, according to Truist Securities analysts. The acquisition, spinoff of underperforming businesses and CFO transition should be “welcomed on some level,” despite the revenue shortfall, the analysts said.
Shares of Teleflex plunged nearly 20% to $142.37 in Thursday morning trading on the New York Stock Exchange.
CEO Liam Kelly, who will continue as chief executive of the remaining organization, said the breakup will give Teleflex more flexibility to invest and compete in its markets.
The company named John Deren, its chief accounting officer, to succeed Powell as CFO. Powell will retire on April 1 but remain a consultant through March 31, 2026, to support the transition.
At the new company, an executive search for key management positions will be initiated and a board of directors and headquarters announced when finalized, Teleflex said. The new company is expected to generate low-single-digit revenue growth with the potential to improve as the UroLift business recovers and Barrigel growth remains strong, according to the release.
A distribution of newly issued shares in the independent company is expected to be completed by mid-2026.
The Biotronik deal is expected to close by the third quarter of 2025, pending regulatory approval.
