Tyco International to Acquire Interest in Floreane Medical Implants
September 21 2005 - 3:11PM
PR Newswire (US)
PEMBROKE, Bermuda, Sept. 21 /PRNewswire-FirstCall/ -- Tyco
International Ltd. (NYSE:TYC)(BSX:TYC) announced that Tyco
Healthcare's surgical business has agreed to acquire a controlling
interest in Floreane Medical Implants, S.A. ("Floreane"). The
agreement includes Tyco's purchase of Mareane, S.A., which owns all
of the Floreane shares held by Francois-Regis Ory, founder,
Chairman & CEO, as well as other additional assets. In
addition, the agreement includes shares held by Michel Therin,
Deputy Managing Director and Chief Technical Officer, and investor
group Aquasourca. Tyco will pay 30.00 EUR (approximately $36.30
USD) in cash per Floreane share after dividend payment of 0.17 EUR
to be approved on Sept. 27 by the general assembly. The price per
share represents a premium of 19 percent over the one-month average
share price and 29.5 percent over the three-month average share
price. The transaction will result in Tyco's ownership of 41
percent of the outstanding shares, which represents a 55 percent
majority voting interest. Floreane is the owner of the highly
respected Sofradim line of medical implant products. The
transaction, which has been approved by the Boards of Directors of
both companies, is subject to regulatory approval in several
European countries. Upon completion of the transaction, Tyco will
launch a mandatory tender offer for the remaining Floreane shares
at the same 30.00 EUR per share price. The acquisition has a total
value of 120 million EUR ($145 million USD), consisting of the
Floreane shares with a value of approximately 115 million EUR ($139
million USD) if all shares are tendered, along with approximately 5
million EUR ($6 million USD) for the additional assets held by
Mareane. "Floreane is an innovator in the application and use of
surgical mesh to provide tissue reinforcement for procedures such
as hernia repair," said Rich Meelia, President of Tyco Healthcare.
"This acquisition will expand Tyco Healthcare's surgical product
portfolio and position us to provide our healthcare customers with
a complementary range of products to improve clinical outcomes in
this disease segment. At the same time, it will allow us to
capitalize on our global sales force and infrastructure to greatly
expand product distribution." Floreane, based in Trevoux, France,
had 2004 sales of approximately 25.5 million EUR ($31 million USD)
and employs approximately 160 people. They offer the largest and
most innovative range of mesh implants of any company in this
field, and have developed products for soft tissue repair including
hernia repair, pelvic floor reconstruction, incontinence, urinary,
adhesion prevention and obesity surgery. Floreane's technology has
been used in successful clinical applications for more than 10
years, helping improve patient outcomes around the world. The state
of the art facility in Trevoux includes research and development
and manufacturing, and will serve as an integral part of Tyco
Healthcare's surgical business in Europe. "We are proud to join
Tyco Healthcare through this strategic acquisition and we are
excited at this opportunity to participate in this new development
phase of Floreane," said Francois-Regis Ory, CEO of Floreane. ABOUT
TYCO INTERNATIONAL Tyco International Ltd. is a global, diversified
company that provides vital products and services to customers in
five business segments: Fire & Security, Electronics,
Healthcare, Engineered Products & Services, and Plastics &
Adhesives. With 2004 revenue of $40 billion, Tyco employs
approximately 250,000 people worldwide. More information on Tyco
can be found at http://www.tyco.com/. FORWARD LOOKING INFORMATION
This release may contain certain "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations and are subject to risks,
uncertainty and changes in circumstances, which may cause actual
results, performance or achievements to differ materially from
anticipated results, performance or achievements. All statements
contained herein that are not clearly historical in nature are
forward-looking and the words "anticipate," "believe," "expect,"
"estimate," "plan," and similar expressions are generally intended
to identify forward-looking statements. The forward-looking
statements in this release include statements addressing the
following subjects: future financial condition and operating
results. Economic, business, competitive and/or regulatory factors
affecting Tyco's businesses are examples of factors, among others,
that could cause actual results to differ materially from those
described in the forward-looking statements. Tyco is under no
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result
of new information, future events or otherwise. More detailed
information about these and other factors is set forth in Tyco's
Annual Report on Form 10-K for the fiscal year ended Sept. 30,
2004, and Quarterly Report on Form 10-Q for the quarterly period
ended July 1, 2005. DATASOURCE: Tyco International Ltd. CONTACT:
Media Relations: Marty Dauer, +1-609-720-4385, or Investor
Relations: Ed Arditte, +1-609-720-4621, or John Roselli,
+1-609-720-4624, all of Tyco International Web site:
http://www.tyco.com/ Company News On-Call:
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