Covidien Completes Acquisition – Analyst Blog
Covidien ( COV ) recently revealed that it completed the earlier announced takeover of superDimension for a sum of about $300 million, plus the possibility of earn-out payments in future. According to Covidien, it has acquired the entire equity of superDimension based in Israel. The company will report the performance of superDimension in the Endomechanical offering of its Medical Devices segment.
superDimension had annual revenues of about $30 million. Its know-how provides less invasive access to lesions embedded in the lungs and mediastinal lymph nodes. By prolonging the reach of orthodox bronchoscopes, the company’s offerings permit better examination of lesions in the lungs.
Covidien is a leading global health care products company with a rich history of developing high-quality products in a cost-effective manner. It competes with Johnson & Johnson ( JNJ ), Becton Dickinson ( BDX ) and C.R. Bard ( BCR ), among others.
Revenues from Covidien’s core Medical Devices segment climbed 7% year over year to about $2 billion in the most recent quarter, driven by double-digit growth across Vascular and Energy Devices product-lines. New products and higher volume contributed to growth.
The Vascular business had another strong quarter with revenues soaring 17% to $390 million, spurred by healthy growth of venous insufficiency and neurovascular products.
Covidien remains committed to rolling out new products and technologies, focusing on the emerging markets and boosting market share in core segments through investments in sales and marketing infrastructure. However, sustained pricing/procedure volume pressure represents a headwind. We are currently Neutral on the stock, supported by a short-term Zacks #3 Rank (Hold).
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