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Teleflex Closes Acquisition of Stapling Technology for Bariatric Surgery
Thursday 29 September 2022

US-based medical technologies provider Teleflex Inc. (NYSE: TFX) has closed the acquisition of Standard Bariatrics, Inc. which has commercialized a powered stapling technology for bariatric surgery, the company said.

Under the terms of the agreement, Teleflex acquired Standard Bariatrics for an upfront cash payment of USD 170m at closing, with additional consideration of up to USD 130m payable upon the achievement of certain commercial milestones.

The Titan SGS from Standard Bariatrics addresses unmet needs in sleeve gastrectomy by offering surgeons the longest continuous staple cutline of 23 centimeters.

According to the company, the first-of-its-kind stapler may help users achieve more consistent and symmetrical sleeve pouch anatomy, setting their patients up for optimized outcomes.

While every patient's anatomy is different, the Titan SGS long staple line enables surgeons to plan and place staples in one firing, minimizing variations sometimes associated with the use of multiple overlapping short-cartridge staple firings.

Additionally, the design may result in a more secure staple line and fewer chances of leaks, as evidenced with higher burst pressures.

Teleflex plans to finance the acquisition through borrowings under its revolving credit facility.

The Titan SGS was commercially launched in the third quarter of 2021. Standard Bariatrics' revenues for 2022 are expected to be approximately USD 15m.

For fiscal year 2022, the transaction is not expected to contribute meaningfully to Teleflex revenue and is expected to be approximately USD 0.10 dilutive to adjusted earnings per share (excluding non-recurring purchase accounting items and other acquisition and integration related costs).

For fiscal year 2023, the transaction is expected to contribute between USD 30 and USD 35m of revenue and be approximately USD 0.10 to USD 0.15 dilutive to adjusted earnings per share (excluding non-recurring purchase accounting items and other acquisition and integration related costs).

Teleflex is the home of Arrow, Deknatel, LMA, Pilling, QuikClot, Rüsch, UroLift, and Weck trusted brands united by a common sense of purpose.
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Date Published: 29/09/2022

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