Medtronic's purchase of Ireland-based Covidien will now be completed in early 2015, according to new documents filed with the Securities & Exchange Commission. That updates a timeline that previously put the range at later this year to early next.
In a message to employees, Medtronic CEO Omar Ishrak, also highlighted how the company's businesses will be structured into four businesses and four regions.
The four businesses include Medtronic's existing three businesses - Cardiac and Vascular Group, valued at $8.8 billion; Restorative Therapies Group worth %6.5 billion and Diabetes Group, $1.7 billion - and the Covidien Group, valued at $10.4 billion. They will be led by the Medtronic group presidents heading them currently and Covidien's Bryan Hanson respectively.
After the close of the transaction, the Covidien Group will function as before with the exception of its Peripheral and Neurovascular businesses. The peripheral vascular business will be integrated into Medtronic's Aortic and Peripherals business, under the broader Cardiac and Vascular Group.
And Covidien's Neurovascular business will function as an independent business under the umbrella of Medtronic's Restorative Therapies Group.
Ishrak also announced four geographic regions around which the combined company will operate - Asia Pacific, the Americas, EMEA and Greater China - down from Medtronic's seven regions currently.
"While we will move to four regions in the future — versus the seven regions represented in the Medtronic structure today — this is in no way intended to reflect a diminished importance or focus on those markets that previously served as regions, nor will I remain any less focused on seeing that these markets reach their potential and objectives," Ishrak assured. "Rather, this approach will ensure we have the appropriate leadership involvement in these markets on a daily basis as we grow our overall scale and complexity."
The Asia Pacific region will comprise India, Australia/New Zealand, Korea and Southeast Asia. This region will be organized under Bob White, who currently leads Covidien’s Emerging Markets business. White's new title upon close of the deal will be , senior vice president and president of Medtronic Asia Pacific.
Canada, Latin America and the United States make up the new Americas region, which will be led by Mike Genau, Medtronic's current SVP and President of its U.S. region, Genau will become senior vice president and president of the Americas Region upon close.
As the name suggests, EMEA will be made up of Europe, the Middle East and Africa. This region will largely remain the same as Medtronic’s existing structure, with the exception of Canada moving to the Americas region. Rob ten Hoedt, our current EMEAC leader, will serve as Executive Vice President and President of EMEA upon close.
Recognizing the immense growth potential that China promises, as well as the incredible complexity and its size, Medtronc will continue to maintain the based on the Greater China region as a standalone region. Chris Lee, current president of Medtronic Greater China, will become senior vice president and president of the combined Greater China region upon close.
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