Teleflex Incorporated (NYSE: TFX), a leading global provider of medical technology products, today announced that it has entered into a definitive agreement to sell its Rigging Services business to Houston Wire & Cable Company (NASDAQ: HWCC) for $50 million. The transaction is subject to customary closing conditions and is expected to close by the end of the second quarter of 2010.
Rigging Services, with annual revenues of approximately $80 million in 2009, offers a range of customized heavy-duty wire rope, wire and synthetic rope assemblies, and related rigging hardware products.
"The decision to divest Rigging Services was made following a thorough review and evaluation of a number of strategic alternatives and is consistent with our strategy of divesting our non-medical assets. This move allows us to continue to focus on the development of our portfolio of quality medical products which improve outcomes and patient and provider safety," stated Jeffrey P. Black, Chairman and Chief Executive Officer.
This transaction is expected to reduce 2010 annualized earnings by approximately $0.15 per diluted share, and cash flow from continuing operations by approximately $10 million. As a result, the Company is adjusting its financial estimates for 2010 from revenue of approximately $1.9 billion to revenue of approximately $1.81 billion; diluted earnings per share from continuing operations excluding special items from a range of $4.10 to $4.25 to a range of $3.95 to $4.10; and cash flow from continuing operations, exclusive of the impact of the adoption of Accounting Standards Codification topic 860 "Transfers and Servicing", from a range of $275 to $280 million to $265 to $270 million.
Rigging Services will be reflected as a discontinued operation in Teleflex's future consolidated financial statements.
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