Teleflex To Acquire Palette Life Sciences AB - Quick Facts

(RTTNews) - Teleflex Incorporated (TFX) has entered into a definitive agreement to acquire Palette Life Sciences AB for an upfront cash payment of $600 million at closing, and up to an additional $50 million upon the achievement of certain commercial milestones.

A key product of Palette Life Sciences is Barrigel, a NASHA spacer designed to reduce radiation delivered to the rectum during prostate cancer radiation therapy. Barrigel received FDA marketing clearance in May 2022, is cleared for marketing in Australia, and is CE Marked. The Palette portfolio also includes Deflux and Solesta, which are NASHA based tissue bulking agents designed to treat pediatric vesicoureteral reflux and fecal incontinence, respectively.

Teleflex expects the acquisition to be dilutive to adjusted earnings per share in 2023 and 2024 by approximately $0.15 and $0.35, respectively. Beginning in fiscal 2025, and thereafter, the company expects the acquisition to be increasingly accretive to adjusted earnings per share.

Palette is estimated to generate net sales of approximately $56 million, on a standalone basis, in 2023. Assuming a December 1, 2023 close of the transaction, the acquisition is not expected to significantly impact the company's 2023 revenue.

"In 2024, we expect this business will achieve year-over-year revenue growth in the high-teens to low 20% range, which gives us further confidence in our ability to deliver on our 2023-2025 LRP financial objectives," said Liam Kelly, CEO of Teleflex.

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