Teleflex Purchases Vidacare, Reports Huge Income Gains in Q3 Teleflex Inc. is buying Vidacare Cor

Teleflex Purchases Vidacare, Reports Huge Income Gains in Q3
Teleflex Inc. is buying Vidacare Corporation, a privately held maker of intraosseous (IO, inside the bone), access devices.

The transaction is valued at $262.5 million. The acquisition is expected to be wrapped up late in the fourth quarter of 2013.

San Antonio, Texas-based Vidacare products incorporate a patented power driver and needle system to access the intraosseous space for a variety of medical, diagnostic and therapeutic purposes. Its products include the EZ-IO Intraosseous Vascular Access System, the OnControl Bone Marrow System and the OnControl Bone Access System. Vidacare’s devices are used in various applications, including vascular access, emergency medicine, oncology and spinal surgery.

“The acquisition of Vidacare, will expand our comprehensive vascular access product portfolio with a defining technology that can provide either a bridge to longer term access devices such as a central venous catheter, or a rapid, less expensive, and lower risk alternative for difficult vascular access when long-term central lines are not necessary,” said Benson Smith, Teleflex’s chairman, president and CEO.

On the heels of the Vidacare announcement, Limerick, Pa.-based Teleflex also reported impressive third-quarter results—particularly the quarter’s profit picture.

The company reported net income of $46.6 million (a huge gain of 114 percent from $21.7 million), or $1.13 per share, on sales of $413.8 million (up 12.4 percent from $368 million in 2012).

Officials attributed the strong sales to the company’s critical care division, which experienced gains from products acquired from Teleflex’s buyout in October 2012 of Netherlands-based LMA International for $276 million.

Results by division include:
Third-quarter revenue for the company’s Critical Care business was $289.3 million, an increase of 18.7 percent compared with the prior year period. Excluding the impact of foreign currency fluctuations, third quarter 2013 net revenues increased 17.9 percent compared with Q3 2012. The increase in constant currency revenue was due to higher sales of anesthesia, vascular, urology and interventional access products. The growth in sales of anesthesia products was primarily due to the contribution from the LMA International business. Constant currency sales growth was partially offset by a decline in sales of respiratory products as compared to the third quarter of 2012.

The Surgical Care division’s third-quarter net revenues were $73.2 million, an increase of 5.2 percent. Excluding the impact of foreign currency fluctuations, third quarter 2013 net revenues increased 3.9 percent compared with the prior year period. The increase in constant currency revenue was due to higher sales of ligation, suture and access products, partially offset by a decline in sales of general surgical instrument products compared with the third quarter of 2012.

Cardiac Care third-quarter 2013 net revenue was $17.6 million, a decrease of 1.6 percent compared with the prior year period. Excluding the impact of foreign currency fluctuations, Q3 2013 net revenues also decreased 1.6 percent. The decrease in constant currency revenue was due to a decline in sales of intra-aortic balloon pumps as compared with the third quarter of 2012.

Third-quarter results for the OEM and Development Services division were $33.7 million in net revenues, a decrease of 8.5 percent compared with the prior year period. Excluding the impact of foreign currency fluctuations, third quarter 2013 net revenues decreased 9.4 percent compared with 2012. The decrease in constant currency revenue was primarily due to a decline in sales of catheter, extrusion and performance fiber products.