Covidien Announces Definitive Agreement to Acquire superDimension, Ltd.
Dublin (Business Wire) – March 19, 2012: Covidien (NYSE: COV), a leading global provider of healthcare products, today announced a definitive agreement to acquire superDimension, Ltd., a private company based in Herzliya, Israel, that develops minimally invasive interventional pulmonology devices. Covidien will acquire all of the outstanding capital stock of superDimension Ltd., for approximately $300 million, with future earn out payments possible. 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. With annual sales of approximately $30 million, superDimension’s i·Logic™ System uses Electromagnetic Navigation Bronchoscopy®to provide minimally invasive access to lesions deep in the lungs as well as mediastinal lymph nodes. By extending the reach of conventional bronchoscopes, the i·Logic System facilitates more effective evaluation of lung lesions, potentially enabling safer, more effective tissue biopsies. ”Covidien’s strategy is to invest in clinically and economically relevant products and technologies which can meaningfully improve patient outcomes while reducing the overall cost of care,” said Bryan Hanson, President, Surgical Solutions, Covidien. “The acquisition of superDimension will position Covidien to continue its investment in meaningful innovation by delivering more comprehensive solutions in the evaluation and treatment of lung diseases.” “We are very pleased that Covidien has elected to acquire superDimension,” said Daniel J. Sullivan, President and Chief Executive Officer, superDimension, Ltd. “This partnership will immediately strengthen our worldwide commercial infrastructure, expanding the benefits of the i·Logic System and Electromagnetic Navigation Bronchoscopy to a wider patient population.” Assuming a second calendar quarter 2012 closing, Covidien does not expect this transaction to have a material impact on its fiscal 2012 sales. The transaction will be slightly dilutive to fiscal 2012 earnings per share; however, the underlying strength of Covidien’s existing businesses is expected to offset a majority of this dilution. Once the transaction has been completed, Covidien will report the superDimension business in the Endomechanical product line within the Medical Devices segment. Supporting materials are now available on the Investor Relations section of Covidien’s website: http://investor.covidien.com About Covidien 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 2011 revenue of $11.6 billion, Covidien has 41,000 employees worldwide in more than 65 countries, and its products are sold in over 140 countries. Please visit www.covidien.com to learn more about our business.