Medtronic to Shed Physio-Control

[RWC130 594]

Medtronic to Shed Physio-Control

By Zacks Equity Research | Zacks – Fri, Nov 18, 2011 3:15 PM EST

Leading medical devices player Medtronic (NYSE:MDT - News) has decided to sell its Physio-Control business to Bain Capital for $487 million in cash. Physio-Control, with nearly 1,000 people employed globally, is a leading provider of emergency medical equipments such as external defibrillators to be used in the treatment of cardio-respiratory and other medical emergencies.

The announcement does not come as a surprise, as the company had as early as 2006 announced its intention to divest this business. But the plan hit a roadblock due to some quality-control issues, which led to a shipment stall. In fiscal 2010, Physio-Control received notice from the US Food and Drug Administration (:FDA) that it successfully met quality improvement requirements and resumed full shipment. Thereafter, in February 2011, with the unit’s margins lagging the company average, Medtronic reinitiated its plan to hive off this business.

CREDIT:

http://finance.yahoo.com/news/Medtronic-Shed-Physio-Control-zacks-676307111.html