Teleflex Inc. said today that it has sold its marine business to an affiliate of private investment firm H.I.G. Capital LLC for $121.6 million, consisting of $101.6 million in cash proceeds, the buyer's assumption of about $15.5 million in liabilities related to the business and a $4.5 million subordinated note from the buyer.
"Today we took another step toward achieving our strategic objective of becoming a pure-play medical technology company and continuing to focus on the development of our portfolio of quality medical technology products. As a result of this transaction our medical technology products are expected to represent approximately 90 percent of our total revenues for 2011," chairman, president and CEO Benson F. Smith said in a statement.
The marine business, which generated net revenue of about $195 million last year, is a global provider of steering and throttle controls and engine and drive assemblies for the recreational marine market. Teleflex Marine is a provider of OEM and aftermarket steering and control products and accessories. The company manufacturers the SeaStar, Sierra, BayStar, Prime Line, and Proheat brands.
This transaction is expected to reduce 2011 annual revenue, adjusted cash earnings per share and cash flow from operations by $185 million, 45 cents a diluted share and $20 million, respectively.
As a result, the company is adjusting its financial estimates with respect to forecast 2011 revenue from a range of $1.81 billion to $1.84 billion to a range of $1.625 billion to $1.655 billion; adjusted cash earnings per share from a range of $4.95 to $5.15 to a range of $4.50 to $4.70; and cash flow from continuing operations from $250 million to $230 million.