TE Connectivity To Buy Creganna Medical Group For $895 Mln - Quick Facts

(RTTNews) - TE Connectivity Ltd. (TEL) said it has agreed to acquire the Creganna Medical group for $895 million in an all-cash transaction.

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

TE Connectivity Chairman and CEO Tom Lynch said, "The acquisition of Creganna Medical is part of our well-established strategy to expand our leadership position in harsh environment applications. This transaction builds on our AdvancedCath acquisition and establishes TE as a leading supplier to the high-growth minimally invasive interventional segment."

The transaction is expected to close in the third quarter of fiscal year 2016. Upon completion of the transaction, the business will be reported as part of TE's Industrial Solutions segment.

TE Connectivity expects $0.03 accretion to its adjusted earnings per share in the first full fiscal year and also expects the transaction to boost revenue growth and EBITDA margins.