Covidien divests specialty chemicals business

Executive Summary

The diversified device, medical supply and drug maker will divest its specialty chemicals business to an affiliate of New Mountain Capital LLC for $280 million under an agreement announced May 26. The division, which generated sales of $414 million in fiscal 2009, makes chemicals and related products for research and quality control labs, and for manufacturing in pharmaceutical, biotechnology and other industries. The sale is part of Covidien's strategy to sell businesses outside health care since its spin-off from Tyco in 2007