Teleflex has announced it will sell its OEM orthopedics business to Tecomet, according to a news release.
Tecomet, which is a contract manufacturing, engineering and metal fabrication technology company based in Wilmington, Mass., will acquire the business for $45.2 million in cash. The Teleflex Medical OEM orthopedics business includes the Beere Medical and SMD brand product lines.
"The decision to divest the OEM orthopedics business is consistent with our strategy to focus on our branded products, invest in late-stage innovative technologies to support our long-term growth, and expand both our gross and operating margins," said Benson F. Smith, chairman, president and CEO of Teleflex, in the release. "The proceeds from the divestiture of this business, along with our ability to continue to generate cash from operations, will enable us to continue to execute our strategic plan for future growth."
The transaction is expected to close during the third quarter of 2012.
Teleflex is headquartered in Limerick, Pa.
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