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Covidien Announces Definitive Agreement to Acquire Newport Medical Instruments

Fri, 03/23/2012 - 10:31am
DUBLIN--(BUSINESS WIRE)--Covidien, a leading global provider of healthcare products and recognized innovator in patient monitoring and respiratory care devices, today announced a definitive agreement to acquire Newport Medical Instruments, Inc.

Covidien will acquire all of the outstanding capital stock of Newport Medical, which is privately-owned and based in Costa Mesa, CA, for approximately $108 million. The transaction, subject to customary closing conditions, including receipt of certain regulatory approvals, is expected to be completed in the second calendar quarter of 2012.

Newport Medical is a physician-led company, focused solely on the design and manufacture of dependable, life improving ventilators that are affordable for caregivers worldwide. Newport Medicals products are sold in the United States and more than 115 countries worldwide.

"This acquisition is consistent with Covidiens strategy to expand into adjacencies and invest in product categories where it can develop a global competitive advantage," said Robert J. White, President, Respiratory & Monitoring Systems, Covidien. "Newports products and technology complement the Companys current portfolio of respiratory solutions and will broaden our ventilation platform for patients around the world, particularly in emerging markets."

Assuming a closing in the second calendar quarter of 2012, Covidien does not expect this transaction to have a material impact on its fiscal 2012 sales, operating margin or earnings per share.

Once the transaction has been completed, Covidien will report the Newport Medical business as part of its Airway & Ventilation product line in the Medical Devices segment.

Supporting materials are now available on the Investor Relations section of Covidiens website: http://investor.covidien.com

ABOUT COVIDIEN

Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines in three segments: Medical Devices, Pharmaceuticals and Medical Supplies. With 2011 revenue of $11.6 billion, Covidien has 41,000 employees worldwide in more than 65 countries, and its products are sold in over 140 countries. Please visit www.covidien.com to learn more about our business.

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