Private equity firms CVC Capital Partners and GTCR have made a joint proposal to acquire medical device manufacturer Teleflex and take the company private, according to a report by Reuters citing an unnamed person familiar with the situation.
The bid is currently under review by Teleflex, though the discussions remain preliminary and there is no certainty that a transaction will proceed. The company could ultimately decline the offer or receive competing interest from other potential buyers, the source added.
Teleflex, which develops and supplies medical technologies including catheters, breathing tubes and vascular access products used in critical care environments, has been in the midst of a broader portfolio reshaping. In December, it completed the divestment of three business units for approximately $2.03bn as part of that strategic repositioning.
Neither CVC, GTCR nor Teleflex reportedly responded immediately to requests for comment.
News of the approach follows prior reporting that the two buyout firms were exploring a potential acquisition of the company. Teleflex shares reacted positively in after-hours trading, rising 13.4% following a 5.5% decline in the regular session, leaving the company with a market capitalisation of around $5.5bn.
A successful transaction would mark a significant step in the company’s ongoing transformation, which has also drawn scrutiny from activist investor Irenic Capital Management. In March, Irenic publicly criticised the board for not engaging more actively with potential strategic alternatives, including a possible sale.
CVC, listed in Amsterdam, manages approximately €205bn in assets across private markets. GTCR, based in Chicago, has an established track record investing in healthcare services and medical technology businesses.
