Teleflex Beefs Up Its Bariatric Surgery Portfolio With This $170M Acquisition

Vandana Singh
1 min read
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In this article:

  • Teleflex Incorporated (NYSE: TFX) has agreed to acquire Standard Bariatrics Inc for an upfront cash payment of $170 million and additional consideration of up to $130 million in milestone payments.

  • Standard Bariatrics offers innovative powered stapling technology for bariatric surgery.

  • The acquisition is expected to be completed in early Q4 of 2022.

  • Related: Teleflex Shares Fall After Revised FY22 Outlook Lags Consensus.

  • The Titan SGS from Standard Bariatrics addresses unmet needs in sleeve gastrectomy by offering surgeons the longest continuous staple cutline of 23 centimeters.

  • The company says this is a first-of-its-kind stapler that may help users achieve a more consistent and symmetrical sleeve pouch anatomy.

  • "The acquisition of Standard Bariatrics adds an exciting and differentiated product serving the large and growing sleeve gastrectomy market, which we estimate to be approximately 120,000 procedures annually in the U.S. In addition, the deal enables Teleflex to leverage our strength in our existing bariatric surgeon call point," said Liam Kelly, Chairman, President & CEO.

  • Teleflex plans to finance the acquisition at closing through borrowings under its revolving credit facility.

  • The Titan SGS was commercially launched in Q3 of 2021. Standard Bariatrics' revenues for 2022 are expected to be approximately $15 million.

  • For FY22, the transaction is not expected to contribute meaningfully to Teleflex revenue. It is expected to be approximately $0.10 dilutive to adjusted EPS.

  • For FY23, the deal is expected to contribute between $30-$35 million of revenue and be approximately $0.10 - $0.15 dilutive to adjusted EPS.

  • Price Action: TFX shares closed traded 0.85% lower at $240.12 on the last check Monday.

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