TE Connectivity to Acquire the Creganna Medical Group

SCHAFFHAUSEN, Switzerland -- TE Connectivity Ltd. has entered into a definitive agreement to acquire the Creganna Medical group for USD $895 million in an all cash transaction. Creganna Medical is a global leader that designs and manufactures minimally invasive delivery and access devices serving medical device original equipment manufacturers (OEMs). The company, headquartered in Ireland, reported sales of approximately $250 million in 2015 and is a portfolio company of Permira Funds.

Upon completion of the transaction, the business will be reported as part of TE's Industrial Solutions segment.

Strategic Rationale

The strategic rationale for the acquisition is as follows:
Expands TE's harsh environment platform: Strengthens TE's global leadership position in critical harsh environment applications where quality, reliability and performance must withstand extreme conditions and failure is not an option. Creganna Medical brings expertise in minimally invasive medical procedures used in cardiovascular, neurovascular and other life-saving treatments and procedures.

Establishes TE as a leader in an attractive segment of the medical device market: Establishes TE as a leading provider of minimally invasive integrated solutions in the attractive interventional segment which has an estimated compound annual growth rate of 7 percent and strong margins. Interventional products are growing globally due to strong underlying trends that include an aging population, the expanding use of advanced technology and procedures that improve patient outcomes, the need for more cost-efficient procedures in the healthcare industry, and the increasing adoption and use of minimally invasive procedures in place of traditional surgery.

Complements TE's product portfolio, manufacturing capabilities and engineering expertise: With highly complementary products, the combination of TE and Creganna Medical will offer customers an unmatched set of integrated solutions in the interventional segment of the medical device market. With the addition of six state-of-the art facilities in locations important to industry-leading customers, Creganna Medical strengthens TE's global presence. The combination adds more than 225 product development engineers, more than doubling the number of TE engineers dedicated to the medical segment. Creganna Medical's engineers will be joining TE's 7,000 engineers, building on TE's expertise in highly engineered solutions that require deep application know-how.

Financial Highlights

The company expects $0.03 accretion to TE's adjusted EPS in the first full fiscal year. The company expects the transaction to boost revenue growth and EBITDA margins.

The transaction is subject to the receipt of certain regulatory approvals and is expected to close in the third quarter of fiscal year 2016. The transaction will be financed through cash and debt.

TE's financial advisor was Morgan Stanley & Co. LLC and outside counsel was Davis Polk & Wardwell LLP.

Conference Call and Webcast for Investors:

The company will hold a conference call for investors today at 9:00 a.m. ET. The call can be accessed as follows. In the United States, dial 800-230-1059; International: 612-234-9959.

Internet users will be able to access the company's webcast, including slide materials, at the "Investors" section of TE Connectivity's website at http://investors.te.com/.

An audio replay of the conference call will be available beginning at 11:00 a.m. ET on February 2, 2016, and ending on February 9, 2016. The dial-in number for participants in the U.S. is 800-475-6701. For participants outside the U.S., the replay dial-in is 320-365-3844, access code: 385602.

For more information, visit:

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