Covidien has announced it has reached a definitive agreement to acquire Newport Medical Instruments, based in Costa Mesa, Calif., for approximately $108 million, according to a news release.
Newport Medical is a physician-led company focused on the design and manufacture of ventilators. Newport Medical's products are sold in the United States and more than 115 countries.
The acquisition is expected to be completed in the second calendar quarter of 2012.
"This acquisition is consistent with Covidien's strategy to expand into adjacencies and invest in product categories where it can develop a global competitive advantage," said Robert J. White, president, respiratory and monitoring systems, Covidien, in the release. "Newport's products and technology complement the company's current portfolio of respiratory solutions and will broaden our ventilation platform for patients around the world, particularly in emerging markets."
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