After announcing plans to split up the company near the top of this year, Teleflex said it has found new homes for its businesses spanning acute care, urology and medical hardware manufacturing.
Two private equity firms, Montagu and Kohlberg, have agreed to carve out Teleflex’s OEM division for a total price of $1.5 billion—netting them a catalog of custom-engineered components and sub-assemblies for catheter-based interventions, as well as surgical fibers and sutures, all employed in therapies across structural heart, neurovascular, electrophysiology and urology.
Montagu and Kohlberg said they plan to set up the business as an independent global contract developer, which currently maintains seven manufacturing facilities in the U.S., Mexico and Ireland. Teleflex vet Greg Stotts, now the general manager of the OEM unit, is set to make the jump to the new company and become its CEO.
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“As a focused, independent company backed by experienced healthcare investors, we will accelerate investment in innovation, quality systems and capacity while continuing to deliver the reliability and engineering depth our customers expect,” Stotts said in a statement.
The components deal marks the second for Montagu in the past two years, after it picked up the metals manufacturing unit of Johnson Matthey for $700 million in early 2024. Now known as Lighteum Medical, it too was set up as a standalone company led by its previous management.
“We have followed Teleflex Medical OEM for several years, giving us real insight into the caliber of the organization and the opportunity that lies ahead as an independent company,” said Montagu partner Adrien Sassi. “Working with Kohlberg, we look forward to leveraging our carve-out expertise, built through decades of transaction experience, and our strong track record in driving growth acceleration in medical device platforms, to support Greg and his team in unlocking the full potential of the company.”
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Adding about $530 million more to Teleflex’s total will be the sale of its acute care and interventional urology products to Intersurgical, the U.K.-based provider of airway management and anesthesia equipment.
“This acquisition reflects a long-term ambition to expand our range and offering to the market,” said Intersurgical CEO Charles Bellm. “We have long considered their brands to be world-class and synergistic with the Intersurgical range.”
Those brands include Teleflex’s anesthesia and respiratory systems—with laryngoscopes, airways and endotracheal tubes—as well as the UroLift procedure for enlarged prostates and Barrigel spacer implant for reducing the side effects of radiation therapies for cancer, the latter of which was acquired in mid-2023 through a $650 million buyout of Palette Life Sciences.
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Both transactions are slated to close in the latter half of next year. Teleflex aims to continue with its remaining portfolio of cardiovascular devices, including recent acquisitions from Biotronik.
In July, Teleflex paid 760 million euros, or about $791 million, for substantially all of Biotronik’s heart and peripheral vascular intervention business, which includes drug-laden balloons and stents as well as the PK Papyrus rescue implant for sealing off coronary artery perforations.
At the time, Teleflex said it also planned to complete the U.S. development of Biotronik’s Freesolve resorbable, drug-eluting scaffold, which claimed a CE mark in 2024 for coronary artery lesions.
In addition, Teleflex announced Tuesday that its board of directors authorized a share repurchasing program for up to $1 billion of the company’s common stock, funded primarily with the proceeds from its two sales.
“Over the past year, we have executed a clear strategy to optimize our portfolio and best position Teleflex for the future, with a focus on driving growth across our core critical care and high acuity hospital markets,” said Teleflex President and CEO Liam Kelly. “We are confident in mid-single-digit growth for Teleflex as we streamline our operations and focus the organization on commercial excellence, enabling us to drive enhanced value for our shareholders and deliver for our customers and the patients they serve. We are also better positioned to return significant capital to our investors.”
