Teleflex to acquire Palette Life Sciences for $600M upfront cash payment

Teleflex announced it has entered into a definitive agreement to acquire privately-held Palette Life Sciences AB for an upfront cash payment of $600M at closing, and up to an additional $50M upon the achievement of certain commercial milestones. The acquisition is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to be completed in the fourth quarter of 2023. The acquisition will expand the Teleflex Interventional Urology portfolio, which includes the UroLift System, to include Non-Animal Stabilized Hyaluronic Acid spacer and tissue bulking products that improve patient outcomes in urology and urogynecology disorders, colorectal conditions, and radiation oncology procedures. Palette Life Sciences is estimated to generate net sales of approximately $56M, on a standalone basis, in 2023. Assuming a December 1, 2023 close of the transaction, the acquisition is not expected to significantly impact Teleflex’s 2023 revenue. Assuming a December 1, 2023 close, the transaction is expected to be dilutive to the company’s adjusted earnings per share in 2023 and 2024 by approximately $0.15 and $0.35, respectively. Beginning in fiscal year 2025, and thereafter, the company expects the acquisition to be increasingly accretive to adjusted earnings per share. Teleflex plans to finance the acquisition through borrowings under its revolving credit facilities and cash on hand.