Medtronic to spin-off external defibrillation business
11 December 2006
Minneapolis, USA. Medtronic, Inc. (NYSE:MDT) has
announced that will spin-off its Emergency Response Systems Business into a
publicly traded, independent company, to operate under the name of
Estimated annual sales for the new company are approximately $450 million
(fiscal year 2007). Medtronic says that Physio-Control will be the world
leader in the $1 billion market for external defibrillation products,
including automated external defibrillators (AEDs) and manual defibrillators
used by hospitals and emergency response personnel.
The new company will offer Medtronic's current portfolio of external
defibrillation and emergency response systems, data management solutions and
support services, including the popular LIFEPAK family of external
defibrillators. The company will have approximately 1,200 employees and will
operate in more than 100 countries around the world. The new company will
continue to be headquartered in Redmond, Washington.
Art Collins, Chairman
and CEO of Medtronic said: “Medtronic routinely reviews its product and
business portfolios and makes adjustments to ensure we meet both our
strategic focus and the high expectations we have set for long-term growth.
The creation of this new company will enable Medtronic to more directly
focus resources on high-growth therapies aimed at chronic disease
“This action also will provide Physio-Control access to a new level of
operational, strategic and financial flexibility to invest in and grow its
business. We are confident that Physio-Control will be successful as an
independent company and that this transition will be seamless to customers
and other business partners."
Brian D. Webster, president and general
manager of Medtronic Emergency Response Systems, will become chief executive
officer of the new company. Webster has more than 15 years experience with
both Medtronic and the original Physio-Control company, which was acquired
by Medtronic in 1998. Webster has served in a variety of senior management
roles within the business, including senior leadership positions in sales,
marketing and operations.