Press Release -- Covidien, a leading global provider of healthcare products, today announced a definitive agreement to sell its Sleep Therapy continuous positive airway pressure (CPAP) and Bi-level products to PH Invest, a privately held company located in Luxembourg.
PH Invest will acquire the CPAP and Bi-level products, including the Nancy, France manufacturing facility, as well as related commercial operations in Europe. Several products, which are sold under the GoodKnight™ and Sandman™ brands, are included in this agreement. The agreement excludes the sleep interface products sold and marketed under the brand names Adam™, Breeze™ and Dreamfit™, which will continue to be sold by Covidien. Financial terms of this transaction were not disclosed.
This transaction, which is subject to customary closing conditions, is expected to be completed in the next 90 days and is not expected to have a material effect on operating income or earnings per share for 2010 or 2011.
In addition, Covidien has completed the previously announced sale of its radiopharmacies in the United States to Triad Isotopes, Inc. of Orlando, FL. Financial terms of that transaction were not disclosed.
Covidien’s radiopharmacy net sales were $91 million in the first six months of fiscal 2010. This transaction is not expected to have a material effect on Covidien’s operating income or earnings per share for fiscal 2010 or 2011.
The decision to divest these product lines was made following a thorough review and evaluation of a number of strategic alternatives. The decision is consistent with Covidien’s strategy to streamline its portfolio and reallocate resources to its faster-growing, higher-margin businesses, where the Company has, or can develop, a global competitive advantage.
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 2009 revenue of $10.7 billion, Covidien has 42,000 employees worldwide in more than 60 countries, and its products are sold in over 140 countries. Please visit www.covidien.com to learn more about our business.