Teleflex is splitting its business into two independently traded entities, with a completion date set for mid-2026.
The company’s urology, acute care, and OEM businesses will be grouped under Teleflex NewCo while Teleflex RemainCo will consist of Teleflex’s vascular access, interventional, and surgical businesses.
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The business units under NewCo achieved around $1.4bn in combined revenues in 2024. According to Teleflex, the new entity will benefit from a simplified operating model, increased management focus, and a tailored investment and capital allocation strategy. These factors are expected to put NewCo in a stronger position to “identify, invest in, and capitalise” on opportunities unique to its businesses.
The businesses set to become part of RemainCo generated around $2.4bn in 2024 revenues. Teleflex expects the new entity to generate constant currency revenue growth of 6% post-separation.
Once complete, Teleflex said the separation will allow RemainCo with a more “nimble operating model” to streamline the entity’s manufacturing footprint from 19 facilities at Teleflex as of year-end 2025 to seven post-separation. The remaining 12 are expected to transfer to NewCo.
Teleflex president and CEO Liam Kelly commented: “The decision to pursue this separation was driven by our active portfolio management process and focus on driving shareholder value.“This transaction is designed to optimise the positioning of both companies to better meet the needs of patients and customers and maximise value for shareholders.”
Taking the form of a distribution of newly issued NewCo shares to shareholders that is tax-free for US tax purposes, Teleflex expects the split transaction to be completed by mid-2026, pending regulatory approvals.
Acquisition of Biotronik’s vascular intervention business to sit under RemainCo
Coinciding with the split announcement, Teleflex signed a deal to acquire Biotronik’s vascular intervention business unit for around €760m ($792m).
Teleflex’s FY 2023 financials show that 25% of its revenues across the year were associated with peripheral interventional procedures, versus 75% by coronary interventions.
Acquisition of the unit, which will sit under RemainCo post-separation, will broaden the company’s interventional portfolio to include vascular intervention devices such as drug-coated balloons, drug-eluting stents, and balloon catheters. This would consolidate RemainCo’s aims to expand its presence in the interventional cardiology and peripheral vascular market.
Kelly commented: “In particular, the acquired coronary products will be highly complementary to our well-established complex percutaneous coronary intervention (PCI) platform and expand and enhance the legacy interventional salesforce and offerings by combining existing Teleflex access products with the vascular intervention therapeutic devices.”
The deal also presents the opportunity for Teleflex to further invest in and expand the clinical trial programme for Biotronik’s Freesolve, a sirolimus-eluting resorbable metallic scaffold (RMS) technology. The device gained a European CE mark in February 2024.
The RMS serves as a temporary scaffolding and drug delivery system, a combination that is anticipated to address the current trend in interventional coronary and endovascular procedures towards leaving behind less permanent hardware. In Biotronik’s recent BIOMAG-I study, Freesolve RMS demonstrated resorption after 12 months, a target lesion failure rate comparable to contemporary drug-eluting stents, and no definite or probable scaffold thrombosis.
Biotronik views its divestment as a “strategic shift” that will allow it to sharpen its focus on active implantable devices and digital healthcare.
Biotronik CEO Dr Alexander Uhl said: “As healthcare continues to rapidly evolve, our focus is firmly on advancing AI-driven technologies that meet the needs of both patients and clinicians in the years to come.
“This strategic shift empowers us to amplify our investments in emerging technologies across cardiac rhythm management (CRM), patient monitoring, heart failure, and neuromodulation therapies.”
Pending regulatory approval and customary closing conditions, the deal is expected to complete by Q3 2025 at the latest.
According to GlobalData analysis, the global CRM devices market is growing at a CAGR of 3.7% and is forecast to reach a valuation of around $15.1bn by 2033, up from around $10.6bn in 2023. The global peripheral vascular devices market is growing at a CAGR of 4.5% and is expected to reach a valuation of almost $17bn by 2033.
