Mar 23, 2012 - Covidien to Acquire Newport Medical Instruments

Covidien to Acquire Newport Medical Instruments

3/23/2012 -- DUBLIN--(BUSINESS WIRE)-- Covidien (NYSE: COV), a leading global provider of healthcare products and recognized innovator in patient monitoring and respiratory care devices, announced a definitive agreement to acquire Newport Medical Instruments, Inc.

Covidien will acquire all of the outstanding capital stock of Newport Medical, which is privately-owned and based in Costa Mesa, CA, for approximately $108 million. The transaction, subject to customary closing conditions, including receipt of certain regulatory approvals, is expected to be completed in the second calendar quarter of 2012.

Newport Medical is a physician-led company, focused solely on the design and manufacture of dependable, life improving ventilators that are affordable for caregivers worldwide. Newport Medical's products are sold in the United States and more than 115 countries worldwide.

"This acquisition is consistent with Covidien's strategy to expand into adjacencies and invest in product categories where it can develop a global competitive advantage," said Robert J. White, President, Respiratory & Monitoring Systems, 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."

Assuming a closing in the second calendar quarter of 2012, Covidien does not expect this transaction to have a material impact on its fiscal 2012 sales, operating margin or earnings per share.

Once the transaction has been completed, Covidien will report the Newport Medical business as part of its Airway & Ventilation product line in the Medical Devices segment.