Earlier this week medical device manufacturer
Medtronic announced the acquisition of healthcare technology and medical supplies provider
Covidien for $42.9 billion, and the company's subsequent pledge to invest $10 billion in U.S. markets is likely to positively impact its
spinal division here in Memphis.
"This acquisition is in large part about growth," says Fernando Vivanco, Medtronic Senior Director of Corporate Communications. "Medtronic has completed a number of acquisitions over the past 15 years which have not impacted the continuing growth of our employee base."
After the completion of the sale, the businesses of Medtronic and Covidien will be combined under a new entity to be called Medtronic plc, with principal executive offices in Ireland, where Covidien's current headquarters resides and where both companies have a longstanding presence. Medtronic plc will continue to have its operational headquarters in Minneapolis, where Medtronic currently employs more than 8,000 people, and the company's spinal division in Memphis (and the more than 1,500 jobs here) should not be negatively affected.
"Medtronic and Covidien are highly complementary and have very limited overlap," says Vivanco. "There is relatively limited overlap in our sales, marketing and R&D organizations. We expect there will be exciting opportunities for employees and sales representatives of both companies as part of a larger, more diversified global organization."
The acquisition is expected to accelerate Medtronic's three fundamental strategies of therapy innovation, globalization and economic value. The two companies will have a presence in more than 150 countries and combined revenues of $27 billion.
Pending regulatory reviews, the transaction is anticipated to close in late 2014.
By Michael Waddell
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