TE Connectivity to buy Irish medical device maker Creganna Medical for $895 mn
02 February 2016
Switzerland's communication equipment maker TE Connectivity Ltd today struck a deal to buy Irish medical device maker Creganna Medical Group from UK-based private equity firm Permira for $895 million in cash.
Permira acquired Creganna in 2010 for €223 million and has since expanded the company through acquisitions, as well as increased sales from $131million to $249 million in 2015.
Founded in 1979 as an engineering outsourcing company, Creganna manufactures minimally invasive delivery and access devices like cardiac stents, balloon catheters and laparoscopic devices used in cardiovascular, neurovascular and other life-saving treatments and procedures.
The Galway, Ireland-based company serves over 400 companies across 30 countries, and its customers include the world's leading medical device and life science companies.
Creganna has design and manufacturing facilities across the US, South America, Europe and Asia.
TE Connectivity, which was spun off from Tyco International Plc in 2007, said that the acquisition will expand its position in critical harsh environment applications where quality, reliability and performance must withstand extreme conditions.
It also establishes TE as a leading provider of minimally invasive integrated solutions in the attractive interventional segment which has an estimated compound annual growth rate of 7 per cent and strong margins.
Interventional products are growing globally due to an aging population, the expanding use of advanced technology and procedures that help patients, the need for more cost-efficient procedures in the healthcare industry, and the increasing adoption and use of minimally invasive procedures in place of traditional surgery.
TE said that the merger with highly complementary products will offer customers an unmatched set of integrated solutions in the interventional segment of the medical device market.
The combination adds more than 225 product development engineers, more than doubling the number of TE engineers dedicated to the medical segment. Creganna's engineers will be joining TE's 7,000 engineers.
Based in Schaffhausen, Switzerland, TE manufactures connectivity and sensor solutions for a range of industries including automotive, industrial equipment, data communication systems, aerospace, defense, oil and gas, consumer electronics, energy and subsea communications.
The company has 13,500 patents granted or pending and 2015 revenues of $12.2 billion.
TE has recently been expanding. In early 2015, it acquired catheter systems maker, AdvancedCath for $190 million.
Commenting on the acquisition, Tom Lynch, chairman and CEO of TE, said, ''The acquisition of Creganna Medical is part of our well-established strategy to expand our leadership position in harsh environment applications.''
''This transaction builds on our AdvancedCath acquisition and establishes TE as a leading supplier to the high-growth minimally invasive interventional segment. Our existing medical product offering, coupled with these acquisitions, positions TE with the broadest range of products and technologies serving this high-growth space,'' he added.