Orthofix sells vascular business to Covidien
Medical device maker Orthofix International NV said has sold its vascular business to Covidien PLC and plans to use proceeds from the sale to pay down debt.
Covidien has much of its operations in Mansfield. Orthofix said that it expects net cash proceeds of up to $19 million, which will be used to reduce long-term debt by about 7 percent.
Chief executive Milinazzo said in a statement that the deal will help focus Orthofix on market segments that show long-term growth potential. The sale includes Orthofix's AV-Impulse mechanical compression technology.
Orthofix, which is based in the Netherlands Antilles, will also provide transitional services to Covidien for up to five months. Orthofix, which operates in the US, UK, Italy, and other locations, increased its 2010 earnings guidance to $2.24 to $2.28 per share based on the deal.
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