Covidien plc today announced that it has completed the sale of its Confluent Surgical product line to Integra LifeSciences Corporation for approximately $235 million in cash. In addition, Covidien may receive up to an additional $30 million, contingent upon the achievement of certain performance measures related to the transition of the Confluent Surgical product line to Integra.
While Covidien expects this transaction to be several cents dilutive to fiscal 2014 earnings per share, it also expects that the underlying strength of its existing businesses will offset this dilution. As a result, Covidien does not anticipate this transaction will have a material impact on its fiscal 2014 outlook.
The completion of this transaction, which was announced Oct. 28, 2013, allows Covidien to better focus resources on its global strategic priorities.