Covidien to pay $2.6bn for ev3
Published 02/06/2010 | 05:00
Covidien, the medical-equipment company spun off from Tyco, agreed to buy ev3 Inc for $2.6bn (€2.1bn).
Covidien will pay $22.50 a share in cash for the Minnesota-based ev3, the companies said in a statement yesterday. Dublin-based Covidien is paying 19pc more than the May 28 closing price for ev3's stock.
The acquisition will add ev3's stents, angioplasty balloons, plaque removal systems and catheters to treat disease of the arteries to Covidien's product range, which specialises in staples, suture needles, wound care, scalpels and products used in surgery.
The deal will give Covidien a bigger stake in the vascular surgery market.
"Ev3 significantly expands our presence in the $3bn peripheral vascular market and gives us a strong entry point into the $1bn neurovascular market," said Covidien CEO Richard Meelia said. "As there is virtually no product overlap we foresee a very straight-forward integration plan."
Covidien fell 72 cents, or 1.7pc, to $41.67 in New York Stock Exchange composite trading. Ev3 rose $3.31, or 17pc, to $22.23. Ev3's shares had risen 42pc this year before yesterday. (Bloomberg)