Benzinga | May 18, 2021 06:55AM EDT

Teleflex To Divest Certain Respiratory Assets To Medline For $286M

* Teleflex Incorporated (NYSE: TFX) has agreed to sell a significant portion of its Respiratory business to Medline Industries Inc for $286 million in cash, reduced by $12 million in working capital not transferring to Medline.

* The divested product lines include oxygen and aerosol therapy, active humidification, non-invasive ventilation, and incentive spirometers.

* The products had generated $139 million in revenue in 2020.

* The transaction is expected to close in the third quarter of 2021.

* Teleflex estimates a revenue headwind of $28 million - 32 million and adjusted EPS dilution of $0.10 - $0.15 in 2021, net of a manufacturing services agreement that it plans to enter into with Medline upon the initial closing of the sale transaction.

* The Company will use the divestiture proceeds to pay down debt.

* Price Action: TFX shares closed at $393.24 on Monday.