Covidien To Sell 2 Of Its Product Lines

NEW YORK (AP) — Covidien PLC said Thursday that it will sell its sleep diagnostics and oxygen therapy product lines and plans to sell its sleep therapy product line in order to concentrate more on its higher-margin businesses.

The medical device maker said Embla, part of Iceland's privately held Flaga Group, will buy its sleep diagnostics products for an undisclosed amount. The transaction includes products under the Sandman brand as well as design/development, sales administration, technical service and shipping facilities in Ottawa, Canada and global sales and service functions.

Covidien's oxygen therapy products will be sold to Chart Industries Inc. of Garfield Heights, Ohio, for an undisclosed sum. The deal includes products under the Companion and Helios brands as well as design, manufacturing, sales and service functions worldwide.

Sleep therapy products include those under the Sandman, DreamFit, GoodKnight and Breeze brands.

The three products line had combined fiscal 2008 sales of approximately $175 million.

Covidien said it expects to close on the sales to Embla and Chart Industries by the end of the year. Neither deal is expected to impact 2010 earnings per share.

Shares of Covidien added 34 cents to $38.89 in afternoon trading.