Company Overview - Teleflex has completed the acquisition of the majority of BIOTRONIK SE & Co. KG's Vascular Intervention business for €760 million, significantly enhancing its interventional access product line and global presence in cath labs [1][8] - The acquired business includes a diverse portfolio of coronary and peripheral intervention products, which are expected to bolster Teleflex's innovation pipeline [4][5] Financial Impact - The acquisition is projected to add $0.10 to Teleflex's adjusted earnings per share (EPS) in the first year, with increasing contributions in subsequent years [10] - Teleflex anticipates that the acquired products will generate revenues of €177 million ($204 million) in the second half of 2025, with a constant currency revenue growth expectation of 6% or better from 2026 onward [9] Market Context - The vascular intervention medical devices market was valued at $5.1 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 7.1% through 2033, driven by the rising prevalence of cardiovascular diseases and advancements in technology [11] Recent Developments - Teleflex has announced findings from a multinational study demonstrating the effectiveness of Arrow Chlorhexidine-Impregnated Central Venous Catheters, showing a 70.5% reduction in the incidence of CLABSI [12]

Financial Data and Key Metrics Changes - For Q4 2024, Teleflex reported revenues of $795.4 million, an increase of 2.8% year-over-year on a GAAP basis and 3.2% on an adjusted constant currency basis [11] - Adjusted earnings per share grew 15.1% to $3.89 [13] - For the full year 2024, adjusted constant currency revenues increased 3.1% year-over-year, while adjusted earnings per share was $14.01 [18] Business Line Data and Key Metrics Changes - Interventional and Surgical businesses showed strong performance with adjusted constant currency growth of 18.7% and 12.3% respectively in Q4 [11] - Interventional Urology revenue increased 3.7% on an adjusted constant currency basis, with growth in Palette offset by softness in the UroLift business [19] Market Data and Key Metrics Changes - Adjusted gross margin for Q4 was 60.1%, flat year-over-year, while adjusted operating margin was 27.6%, up 130 basis points [17] - Cash flow from operations increased 24.7% year-over-year to $638.3 million in 2024 [20] Company Strategy and Development Direction - Teleflex announced a definitive agreement to acquire the Vascular Intervention business from BIOTRONIK for approximately EUR760 million, aimed at enhancing growth and market presence in the cath lab [32] - The company plans to separate into two independent publicly traded companies, RemainCo and NewCo, to optimize product portfolios and drive growth [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 6%+ revenue growth for RemainCo post-separation, despite current challenges in the UroLift and OEM businesses [106] - The guidance for 2025 anticipates adjusted constant currency growth of 1% to 2%, reflecting headwinds from UroLift and inventory management by customers [24][103] Other Important Information - A noncash goodwill impairment charge of $240 million was recognized for the Interventional Urology North America reporting unit due to subdued revenue growth [21] - The company plans to finance the acquisition through a new term-loan and revolving borrowings under its existing senior credit facility [47] Q&A Session Summary Question: What prompted the review and timing for the separation? - Management indicated that continuous portfolio reviews led to the conclusion that separating the businesses would maximize shareholder value, especially with the addition of the BIOTRONIK business [78][80] Question: How will the sales force be structured post-acquisition? - The acquisition allows for leveraging Teleflex's strong presence in the Americas and BIOTRONIK's strength in EMEA, creating opportunities for synergy [84] Question: What is the growth outlook for the acquired assets? - The acquired portfolio is expected to deliver a constant currency revenue CAGR of 5.4% since 2022, with expectations for growth to exceed 6% post-acquisition [94] Question: What are the expected margins for RemainCo and NewCo? - RemainCo is expected to grow at 6%+ with mid-60s gross margins, while NewCo is anticipated to grow in the low single digits with mid-50s gross margins [118] Question: How will the capital structure be managed post-separation? - The capital structure for both companies will be defined in the coming quarters, with a focus on ensuring both have strong, viable futures [121]