Teleflex Incorporated (NYSE:TFX) fell ~5% pre-market Wednesday after announcing a deal to acquire privately held Palette Life Sciences AB, a medical device maker focused on prostate cancer therapy.
Per the terms, Teleflex (TFX), based in Wayne, Pennsylvania, is set to pay $600M in upfront cash to acquire Palette at the closing. Additional payments can reach up to $50M depending on the achievement of certain commercial milestones.
Palette Life Sciences markets Barrigel, an injectable device used in prostate cancer radiation therapy to decrease the radiation dose delivered to the rectum.
Teleflex (TFX) expects to complete the transaction in Q4 2023 and projects a potential dilution of $0.15 and $0.35 in its adj. earnings per share in 2023 and 2024, respectively, assuming a close on Dec. 1, 2023.
Palette, which, according to Teleflex (TFX) CEO Liam Kelly, is set to generate a high teens to low 20% range of revenue growth in 2024, can be accretive to the company’s bottom line starting from fiscal 2025.
Teleflex (TFX) plans to fund the transaction through borrowings and cash on hand.
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Teleflex stock down on deal to acquire Palette Life Sciences
