Business Strategy and Outlook| Aaron Degagne |
Over the past decade, Teleflex has transformed from a diverse industrial, commercial, and healthcare company to one focused on single-use medical devices using the dual levers of acquisitions and divestitures. Despite the completion of this transformation, Teleflex is likely to remain a serial acquirer, generally targeting companies in the $50 million-$200 million range where it can expand international scale and increase target company relevancy with group purchasing organizations. The firm prioritizes the development and acquisition of relatively inexpensive products--under $1,000--that are unlikely to be targeted by the healthcare device middlemen for cost savings. As an example, one night's stay in a hospital can lead to billed expenses of over $10,000, with Teleflex’s products accounting for around $500, or 5% of the total hospital cost.