Covidien cleans house
DUBLIN, Ireland – Covidien has sold its oxygen and sleep diagnostics divisions, and it’s in talks to sell its sleep therapy product line, the manufacturer announced today.
Terms of the deals were not disclosed, but the combined earnings of all three divisions in fiscal 2008 were $175 million, according to a release.
Broomfield, Colo.-based Embla Systems will acquire Covidien's sleep diagnostics products, including the Sandman brand.
"You can't open a newspaper or magazine today without seeing something about sleep," stated David Baker, president and CEO of Embla Systems, in a release. "We know it impacts every aspect of our lives and this acquisition puts us at the forefront of the industry."
Embla Systems manufactures and distributes sleep diagnostic products and services in more than 65 countries.
Caire, a wholly owned subsidiary of Cleveland-based Chart Industries, has acquired Covidien’s oxygen therapy business, including the HeliOS and Companion brands.
"This transaction will allow us to strategically expand our oxygen therapy product offering while leveraging our existing operating footprint," stated Sam Thomas, chairman, CEO and president of Chart Industries, in a release.
Caire operates under Chart Industries’ biomedical division. Chart Industries expects the deal to boost the biomedical division’s sales by more than 50% to approximately $150 million annually, Thomas stated in the release.
Caire manufactures a full line of liquid oxygen reservoirs and liquid oxygen portables under the Liberator and Spirit brands.
The deals are inline with Covidien’s plan to streamline its offerings, it stated in the release.