Medical device maker Teleflex to split lower growth units
Shares of the company were down 12% in premarket trade after it also forecast its adjusted profit below Wall Street estimates.
After the split, Teleflex would focus on devices for bloodstream and heart procedures, along with medical imaging, while separating its urology, acute care and OEM units.
The urology unit has been experiencing lower sales from its UroLift device for enlarged prostate treatment, while the OEM or the contract instrument manufacturing division recently lost a customer.
A total of 12 out of 19 manufacturing facilities will be transferred to the new company.
Teleflex also plans to boost the remaining business by buying Germany-based Biotronik's blood vessel device unit for about 760 million euros ($796.3 million) in cash.
It said the separation will allow each company to simplify operations, streamline manufacturing, allocate resources more effectively and increase management focus.
Liam Kelly will stay as Teleflex CEO, and the company intends to initiate an executive search for key management positions at the spun-off business shortly.
Teleflex said it would distribute shares of the spun-off company to shareholders and expects the separation to be completed in mid-2026.
Separately, the Wayne, Pennsylvania-based company expects adjusted per-share profit for 2025 in the range of $13.95 to $14.35, below analysts' average estimate of $15.23 as per data compiled by LSEG.
The company also said its Chief Financial Officer Thomas Powell will retire, and be replaced by accounting chief John Deren.
($1 = 0.9544 euros)
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