Medtronic set to buy Covidien, expand globally and invest in US

By Gayle S. Putrich
Staff Reporter

Published: June 16, 2014 9:09 am ET
Updated: June 16, 2014 11:50 am ET

Image By: Medtronic Inc. Medtronic will retain operational headquarters in Minneapolis, the site of its current world headquarters, but move its executive offices to Ireland.

Related to this story

Topics Medical, Mergers & Acquisitions, United States, Europe

Medtronic Inc. will acquire Covidien plc to create a medical device and supplies company with $27 billion in global sales.

Minneapolis-based Medtronic — already the world's largest stand-alone medical device maker — announced its plans June 15 to buy Covidien, based in Dublin, for $42.9 billion in cash and stock. After the sale closes, the new company will be called Medtronic plc and based in Ireland, but with operational headquarters in Minneapolis.

After the merger, the latest in a wave of medical device manufacturers being bought and sold, the new company will have a broader scope and more than 87,000 employees in more than 150 countries, putting the new device company on par with global medtech leader Johnson & Johnson.

Medtronic also pledged to invest $10 billion in additional technologies in the U.S. during the next 10 years, which will cover venture capital investments, research and development and additional acquisitions.

“The medical technology industry is critical to the U.S. economy and we will continue to innovate and create well-paying jobs,” said Omar Ishrak, Medtronic chairman and CEO, in a statement. “This combination will allow us to accelerate [our] investments.”

Combining the two businesses will provide greater global reach and a wider portfolio of products and services, the companies said.

The joint company will also have greater access to emerging markets, where it will have $3.7 billion in sales. Covidien has extensive capabilities in emerging market R&D and manufacturing, while Medtronic has established business in a broader product range that it can bring to those regions.


Comments

Medtronic set to buy Covidien, expand globally and invest in US

By Gayle S. Putrich
Staff Reporter

Published: June 16, 2014 9:09 am ET
Updated: June 16, 2014 11:50 am ET

Post Your Comments


Back to story


More stories

Image

Using 3-D printing for molds to speed medical part development

October 31, 2014 10:17 am ET

3-D printing and additive manufacturing equipment maker Stratasys Ltd. is collaborating with U.S. design and product developer, Worrell Design Inc.,...    More

Image

Ebola scare, ACA could drive health care growth

October 30, 2014 2:45 pm ET

Bill Wood's new forecast for medical supplies and equipment calls for an increase of 6.6 percent in the total output of these products in 2014, and...    More

Image

Magna opens new exterior facility, plans for lighting investment

October 30, 2014 1:36 pm ET

Canadian automotive supplier Magna International Inc. on Oct. 28 opened a new injection molding and robotic paint line facility in Delta Township,...    More

Image

PP prices rise, solid PS, PET drop

October 30, 2014 1:15 pm ET

North American polypropylene resin prices surged again in October, while regional prices for solid polystyrene and PET bottle resin continued their...    More

Image

Italian compounder opening first US plant

October 30, 2014 9:45 am ET

The song of the South has led Italian compounder So.F.Ter Group to open its first plant in the United States in Lebanon, Tenn.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events