Covidien cleans house
MANSFIELD, Mass. - Covidien's getting out of the home respiratory and sleep businesses to focus on more profitable, faster-growing product lines, the company stated in a release last week.
According to the release:
Caire, a wholly owned subsidiary of Chart Industries, has acquired Covidien's oxygen therapy products. The deal includes products under the Companion and Helios brands, as well as design, manufacturing, sales and service functions worldwide. Caire currently manufactures a full line of liquid oxygen reservoirs and liquid oxygen portables under the Liberator and Spirit brands.
Chart Industries expects the deal to boost its biomedical division's sales by more than 50% to approximately $150 million annually, CEO Sam Thomas stated in a release.
Embla, part of Iceland's privately held Flaga Group, will buy Covidien's sleep diagnostics products for an undisclosed amount. This transaction includes products under the Sandman brand, as well as design/development, sales administration, technical service and shipping facilities in Ottawa, Canada, and global sales and service functions.
Covidien also plans to sell its sleep therapy product line. This includes several products sold under the Sandman brand, as well as the DreamFit, GoodKnight and Breeze brands.
In fiscal 2008, sales of these three product lines totaled about $175 million.