TE Connectivity to buy Creganna Medical Group for $895 million

[February 02, 2016]  (Reuters) - Swiss-based communication equipment maker TE Connectivity Ltd said it would buy medical device maker Creganna Medical Group for $895 million, expanding in the fast-growing business of supplying equipment for minimally invasive procedures.

Ireland-based Creganna Medical makes products such as cardiac stents, balloon catheters and laparoscopic devices used in cardiovascular, neurovascular and other life-saving treatments and procedures.

Minimally invasive procedures involve using devices such as catheters to make tiny incisions instead of creating large openings on the body.

TE bought another catheter systems maker, AdvancedCath, for $190 million in February 2015.

TE said the deal is expected to add 3 cents per share to earnings in the first full year after the deal closes, probably in the third quarter of 2016.

Creganna Medical will be part of TE's industrial solutions business, which mainly includes communication equipment used in aerospace, defense, oil, and gas markets.

Morgan Stanley & Co LLC was TE's financial adviser while Davis Polk & Wardwell LLP was the outside counsel.

(Reporting by Kshitiz Goliya in Bengaluru; Editing by Sriraj Kalluvila)

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