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Covidien Buys eV3

Covidien Plc, the medical-equipment company spun off from Tyco International Ltd., agreed to buy ev3 Inc. (Plymouth, MI) for $2.6 billion. Covidien will pay $22.50 a share in cash for ev3. Dublin-based Covidien is paying 19% more than the May 28 closing price for ev3’s stock.

The acquisition adds ev3’s stents, angioplasty balloons, plaque removal systems, and catheters to Covidien’s product range of staples, suture needles, wound care, scalpels and products used in surgery. The deal positions Covidien in the vascular surgery market.

The transaction is expected to be completed by July 31. Ev3’s directors and officers plan to tender their shares, according to the statement. The purchase will reduce Covidien’s earnings per share this year and next, according to the statement. Covidien says it has no plans to move any of ev3’s operations out of Minnesota. Ev3 had 1,350 employees at the end of 2009.

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