Teleflex, Arrow combine in $2 billion merger; cost savings expected to reach $75 million

By Lisa Kerner

Charlotte, N.C., Oct. 1 - Teleflex Inc. said it completed its acquisition of Arrow International, Inc., creating a $1.4 billion medical technology business.

The companies announced a merger agreement on July 23 that gives Arrow shareholders $45.50 cash per share in a deal valued at $2 billion.

"Completing the Arrow acquisition is a significant milestone in our strategy to position Teleflex as a diversified company defined by its medical business," Teleflex chairman and chief executive officer Jeffrey P. Black said in a company news release.

"Our goal now is to accelerate the growth of our medical business while capturing cost savings and other synergies that create value for our customers and shareholders."

Teleflex expects synergies from the transaction to reach $70 million to $75 million by fiscal year 2010. The company said some 80% of the synergies should come from cost savings initiatives, with the balance from revenue growth initiatives.

The transaction was financed through a combination of cash, a senior secured syndicated bank loan and a private placement of notes.

It was previously reported that Teleflex Medical president Ernest Waaser will become president of the combined business.

Reading, Pa.-based Arrow develops, manufactures and markets disposable catheters and related products for critical and cardiac care.

Teleflex is a diversified industrial company located in Limerick, Pa. Its products are used in the commercial, medical and aerospace markets.

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