Covidien completes sale of surgical product line to Integra LifeSciences

Covidien has announced the completion of the sale of its Confluent Surgical product line to Integra LifeSciences.

The deal sees Covidien receive an initial cash payment of $235 million (143.86 million pounds). The firm may also receive up to an additional $30 million, contingent upon the achievement of certain performance measures related to the transition.

Covidien has sold off the product line to better focus resources on its global strategic priorities, while Integra's proven expertise in the neurosurgery and spine surgery sector will help to safeguard the future success of the Confluent Surgical brand.

Confluent Surgical products include DuraSeal, DuraSeal Exact/Xact, VascuSeal and SprayShield, all of which were formerly part of the soft tissue repair category of Covidien's medical devices business.

A statement from the company said: "While Covidien expects this transaction to be several cents dilutive to fiscal 2014 earnings per share, it also expects that the underlying strength of its existing businesses will offset this dilution."