Orthofix agrees sale of vascular business assets to Covidien

Orthofix International has confirmed a deal to sell its vascular business and associated assets to fellow medical technology company Covidien.

The firm is selling its interest in this sector, including its AV-Impulse mechanical compression technology, in a move designed to allow it to secure long-term financial stability.

Under the terms of the agreement, Orthofix is to supply Covidien with two years’ worth of Impads for use in conjunction with the compression therapy devices, as well as providing transitional services for up to five months.

Orthofix chief executive officer Alan Milinazzo stated that the money generated from this sale will help the company to deleverage its balance sheet.

He added: “This transaction represents another important step towards focusing Orthofix on strategic market segments that represent long-term growth potential for the company.”

Last month, Orthofix published its financial results for the fourth quarter of the 2009 fiscal year, a period which saw the company experience record revenue levels.