Orthofix focuses – sells Vascular Business to Covidien, results in $19M net cash
Orthofix International N.V. announced today it has sold the assets of its vascular business, including its AV-Impulse(R) mechanical compression technology, to Covidien.
“This transaction represents another important step towards focusing Orthofix on strategic market segments that represent long term growth potential for the Company,” said Orthofix’s CEO Alan Milinazzo. “Additionally, the proceeds from the sale of this business will allow us to further deleverage our balance sheet.”
As part of the sale, Orthofix has agreed to provide transitional services to Covidien for a period of up to five months. Additionally, under the terms of two Supply Agreements, Orthofix will provide Covidien with 2-years’ worth of Impads used in conjunction with the compression therapy devices being sold, as well as with additional products relating to this business for a 90 day period.