Move will strengthen company's position in patient monitoring and respiratory care markets
Patient monitoring innovator and respiratory care device supplier, Covidien, has announced a definitive agreement to acquire Newport Medical Instruments.
Under the deal Covidien will acquire all of the firm’s outstanding capital stock, which is privately-owned and based in Costa Mesa, California, for approximately $108m.
The transaction, subject to customary closing conditions, including receipt of regulatory approvals, is expected to be completed in the second calendar quarter of this year.
Newport Medical is a physician-led company focused solely on the design and manufacture of dependable, life-improving ventilators. Its products are sold in the United States and more than 115 other countries worldwide.
“This acquisition is consistent with our strategy to expand into adjacencies and invest in product categories where we can develop a global competitive advantage,” said Robert J White, president of respiratory and monitoring systems at Covidien. “Newport’s products and technology complement the company’s current portfolio of respiratory solutions and will broaden our ventilation platform for patients around the world, particularly in emerging markets.”
Once the transaction has been completed, Covidien will report the Newport Medical business as part of its airway and ventilation product line in the medical devices segment.