Medtronic offloads Physio-Control for $487M
The Minneapolis-based Medtronic has been openly seeking to divest its subsidiary for quite awhile. Medtronic expects to use a portion of the proceeds to offset any potential dilutive impact from this transaction to fiscal year 2012 non-GAAP earnings per share. Headquartered in Redmond, Wash., Physio-Control has nearly 1,000 employees worldwide. Brian Webster, currently president, will continue to lead the company, and will be named CEO following completion of the transaction.
Physio-Control products, which include Lifepak monitor/defibrillators, the Lucas 2 chest compression system, and the Lifenet System cloud-based data management tools, are used by emergency medical services and hospital care teams. Physio-Control also provides a line of automated external defibrillators for lay responders’ use in workplace environments, airports, schools and communities in the case of a cardiac emergency.
The transaction is expected to close in the first quarter of calendar year 2012, and is subject to certain regulatory and customary closing conditions.