WAYNE, PA — Teleflex Incorporated (NYSE: TFX), a leading global provider for healthcare supplies and services, announced that it has completed the previously announced acquisition of Z-Medica, LLC, an industry-leading manufacturer of hemostatic products.
On October 28, 2020, Teleflex announced a definitive agreement to acquire Z-Medica. Under the terms of the agreement, Teleflex will acquire Z-Medica for an upfront cash payment of $500 million at closing, and up to an additional $25 million upon the achievement of certain commercial milestones. Teleflex acquired certain tax attributes in the transaction that are expected to result in future tax benefits. Teleflex valued these tax attributes at approximately $40 million in arriving at our purchase price.
Based on the date of closing, the acquisition is not expected to significantly impact Teleflex’s 2020 revenue or adjusted earnings per share. The transaction is expected to contribute between $60 million and $70 million of revenue and between $0.07 and $0.15 in adjusted earnings per share in fiscal year 2021 (excluding non-recurring purchase accounting items and other acquisition and integration related costs). Beyond 2021, the Company expects the acquisition to deliver a high-single-digit revenue growth profile and further accretion to adjusted earnings per share.
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