TE Connectivity to acquire the Creganna Medical Group

Acquisition expands TE’s harsh environment portfolio;
Establishes TE as a leading supplier to the fast-growing minimally invasive interventional medical device segment;
Transaction expected to be accretive to adjusted earnings per share (EPS) in first full fiscal year.

TE Connectivity, a world actor in connectivity and sensors, announced that it has entered into a definitive agreement to acquire the Creganna Medical group for USD $895 million in an all cash transaction.

Creganna Medical is a global leader that designs and manufactures minimally invasive delivery and access devices serving medical device original equipment manufacturers (OEMs). The company, headquartered in Ireland, reported sales of approximately $250 million in 2015 and is a portfolio company of Permira Funds.

“The acquisition of Creganna Medical is part of our well-established strategy to expand our leadership position in harsh environment applications,” said TE Connectivity Chairman and CEO Tom Lynch. “This transaction builds on our AdvancedCath acquisition and establishes TE as a leading supplier to the high-growth minimally invasive interventional segment. Our existing medical product offering, coupled with these acquisitions, positions TE with the broadest range of products and technologies serving this high-growth space”.

“We look forward to welcoming Creganna’s talented team to TE,” said Lynch. “The combined team will bring significant engineering expertise and industry depth to create highly engineered solutions for OEMs globally.“

Upon completion of the transaction, the business will be reported as part of TE’s Industrial Solutions segment.

Strategic Rationale

The strategic rationale for the acquisition is as follows:

Expands TE’s harsh environment platform: Strengthens TE’s global leadership position in critical harsh environment applications where quality, reliability and performance must withstand extreme conditions and failure is not an option. Creganna Medical brings expertise in minimally invasive medical procedures used in cardiovascular, neurovascular and other life-saving treatments and procedures.

Establishes TE as a leader in an attractive segment of the medical device market: Establishes TE as a leading provider of minimally invasive integrated solutions in the attractive interventional segment which has an estimated compound annual growth rate of 7 percent and strong margins. Interventional products are growing globally due to strong underlying trends that include an aging population, the expanding use of advanced technology and procedures that improve patient outcomes, the need for more cost-efficient procedures in the healthcare industry, and the increasing adoption and use of minimally invasive procedures in place of traditional surgery.

Complements TE’s product portfolio, manufacturing capabilities and engineering expertise: With highly complementary products, the combination of TE and Creganna Medical will offer customers an unmatched set of integrated solutions in the interventional segment of the medical device market. With the addition of six state-of-the art facilities in locations important to industry-leading customers, Creganna Medical strengthens TE’s global presence. The combination adds more than 225 product development engineers, more than doubling the number of TE engineers dedicated to the medical segment. Creganna Medical’s engineers will be joining TE’s 7,000 engineers, building on TE’s expertise in highly engineered solutions that require deep application know-how.

Source: TE Connectivity