Covidien Snaps Up superDimension
Covidien PLC (NYSE:COV), a Dublin-based maker of medical devices and generic drugs, has agreed to acquire Israel-based medical products company superDimension for about $300 million.
SuperDimension manufactures minimally invasive pulmonology devices and may be entitled under the deal to milestone payments from Covidien in the future. Covidien has restructured its medical devices segment in recent years and the unit has been showing strong sales — the deal may reflect the company’s desire to expand the scope of its products in the diagnosis and treatment of lung diseases.
Covidien does not see the transaction making a large impact on its 2012 sales, but acknowledges that it could have a marginally dilutive impact on earnings per share. Covidien expects the deal to close in the second quarter. Its first-quarter earnings grew 16 percent, boosted by strong sales in the medical devices business.
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