Teleflex To Buy NeoTract For Up To $1.1 Bln

(RTTNews) - Teleflex Inc. (TFX) said that it agreed to buy NeoTract Inc. in a transaction valued up to $1.1 billion.

As per the terms of the agreement, Teleflex will acquire NeoTract for an upfront cash payment of $725 million at closing, and up to an additional $375 million upon the achievement of certain commercial milestones related to sales through the end of 2020.

The Boards of Directors of both Teleflex and NeoTract have unanimously approved the transaction. This transaction is subject to the satisfaction of customary closing conditions and is expected to close within the next 30 days.

The transaction is expected to close within the next 30 days and is subject to the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions.

The acquisition is expected to be slightly dilutive to adjusted earnings per share in 2017, however, the Company does not expect to adjust its previously provided adjusted earnings per share range as a result of the acquisition. During 2018, the acquisition is expected to be breakeven to adjusted earnings per share, with significant accretion thereafter, including $0.35 to $0.40 of adjusted earnings per share1 accretion in 2019.

The acquisition is expected to generate a return on invested capital that meets Teleflex's cost of capital in the third year after closing and exceeds Teleflex's cost of capital in the fourth year after closing.

Founded in 2004, NeoTract is a privately-held medical device company that has developed and commercialized the FDA-cleared UroLift® System, a novel, minimally invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia, or BPH