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 Mergers & Acquisitions, Europe, United States, Medical

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

McCann expanding in Ohio

December 17, 2014 11:59 am ET

Compounding firm McCann Plastics will spend $1.2 million on an expansion project that will create 15 new jobs at its plant in Green, Ohio.    More

Image

New extruders, repelletizer to improve production for InterGroup

December 17, 2014 6:00 am ET

InterGroup International Ltd. will install new, larger extruders and repelletizers at all three of its plastic scrap recycling locations in 2015.    More

Image

Investments allow UK's Jayplas to keep recycling supply chain at home

December 17, 2014 9:32 am ET

Corby, England-based plastics recycler Jayplas has announced the completion of a new extrusion and printing plant, together with a new packaging...    More

Image

Shipping slowdowns add to season's stress

December 16, 2014 4:02 pm ET

Toy companies know what they want for Christmas: an end to crippling shipping delays at West Coast ports.    More

Image

Ecolean expanding flexible packaging production in China

December 16, 2014 3:07 pm ET

Flexible packaging maker Ecolean AB is opening a new factory and warehouse in China to increase production.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

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 billion 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

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