TE Connectivity to Acquire AdvancedCath
Strengthens TE's Position in the Attractive Medical and Healthcare Markets;
Expands TE's Product Portfolio and Expertise in Medical Applications
SCHAFFHAUSEN, Switzerland, Feb. 18, 2015 /PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL), a world leader in connectivity, announced today that it has entered into a definitive agreement to acquire AdvancedCath for $190 million USD in cash.
AdvancedCath is a leading source of advanced catheter systems, with estimated 2015 revenues of $60 million. The company combines best-in-class technologies with industry-leading expertise in lifesaving therapy areas.
The acquisition complements and significantly expands TE's connectivity and sensor position in the attractive, high-growth interventional space of the medical market. Further, it will allow TE to provide more complete integrated solutions to customers.
TE's Medical business designs and manufactures connectors, sensors and components for use in surgical, interventional catheter, imaging, diagnostic and therapeutic healthcare applications. Upon the completion of the transaction, the AdvancedCath team will report in through TE's Medical business unit, which is part of TE's Industrial Solutions segment.
"The acquisition of AdvancedCath expands TE's Medical business and positions us to be a leading provider of connectivity and sensor solutions in the high-growth medical device market," said Terrence Curtin, president, TE Connectivity Industrial Solutions segment. "Today's OEMs are developing innovative procedures that are minimally invasive to improve outcomes and quality of care. The combination of TE's connectivity and sensor solutions with AdvancedCath's expertise in the medical device market provides customers with an unmatched set of capabilities and technologies that enable future innovations and medical advances. We look forward to welcoming AdvancedCath's talented team to TE."
"We can now offer customers an unmatched combination of sensor, material science, electrical and biomedical technologies and a single source of manufacturing expertise for advanced medical devices," said Randall Sword, CEO, AdvancedCath. "With TE's geographic footprint, we can provide better support to our global customers as they progress through development, clinical trials and volume manufacturing."
Strategic Rationale:
- Establishes TE's Medical business as a leading provider of highly engineered connectivity and sensor solutions for OEMs in the attractive and growing medical device market.
- Expands TE's opportunity in the interventional device outsourced manufacturing market, which is growing at 10 percent annually.
- Strengthens TE's position in the medical device market by leveraging TE's expertise in engineering and manufacturing with AdvancedCath's strong reputation and expertise in the healthcare and medical device market.
Transaction Closing:
The transaction is subject to the receipt of regulatory approval and other customary closing conditions. The transaction is expected to close in late March, 2015.
Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. In addition to our future financial condition and operating results, the forward-looking statements in this release include statements addressing our ability to consummate the acquisition of AdvancedCath (the "AdvancedCath Acquisition"), including the receipt of regulatory approvals; and our ability to realize projected financial impacts of and to integrate the AdvancedCath Acquisition into our operations. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the risk that the AdvancedCath Acquisition may not be consummated; the risk that a regulatory approval that may be required for the AdvancedCath Acquisition is not obtained or is obtained subject to conditions that are not anticipated; the risk that revenue opportunities, cost savings and other anticipated synergies from the AdvancedCath Acquisition may not be fully realized or may take longer to realize than expected; the risk that AdvancedCath's operations will not be successfully integrated into ours; business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive industry and the telecommunications networks and consumer devices industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept. 26, 2014 as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.
ABOUT TE CONNECTIVITY
TE Connectivity (NYSE: TEL) is a $14 billion global technology leader. Our connectivity and sensor solutions are essential in today's increasingly connected world. We collaborate with engineers to transform their concepts into creations – redefining what's possible using intelligent, efficient and high-performing TE products and solutions proven in harsh environments. Our 80,000 people, including 7,500 design engineers, partner with customers in over 150 countries across a wide range of industries. We believe EVERY CONNECTION COUNTS – www.TE.com.
ABOUT ADVANCEDCATH
AdvancedCath, formerly AdvancedCath Technologies, MP&E, LSA Laser and TechDevice, is a leading player in the design, development and manufacturing of advanced catheter systems. AdvancedCath works with medical device OEMs to design and manufacture catheter and guidewire systems used in complex interventional and endosurgical procedures. www.AdvancedCath.com.
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SOURCE TE Connectivity Ltd.
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