July 24, 2007 -- As a bitter dispute regarding the future of Arrow International Inc. simmers, the Bern Township maker of medical devices said Monday that it has agreed to be sold to a Montgomery County firm for $2 billion in cash. Teleflex Inc. of Limerick said it has agreed to pay $45.50 per share. Arrow shares surged on the news, spiking past the firm's 52-week trading range and closing at $44.11 on the Nasdaq Stock Market.

The purchase will be used to enlarge Teleflex's medical segment, but details regarding the fate of Arrow's facilities in Berks County and the 700 jobs associated with them were sparse. Frederick J. Hirt, Arrow chief financial officer, and Joseph Crivelli, Teleflex spokesman, said the Reading facilities are expected to remain an important component of the combined organization. Regarding jobs, the spokesmen said no final decisions had been made.

Arrow employees were told of the deal in meetings on Monday. The firms said both boards had approved the deal, which is expected to close in the fourth calendar quarter of 2007. Arrow said it expects shareholders to vote on the proposed deal at its annual meeting Aug. 31. Arrow's board decided to sell the company as a result of a dispute by large shareholders, including the Robert McNeil Jr. Trust, which had sought to impose a mandatory retirement age for Arrow directors.

Board members including Arrow's founders -- John T. Broadbent, T. Jerome Holleran, Marlin Miller Jr. and Raymond Neag -- said the dissident group was trying to seize control of the firm. The board subsequently fired Carl G. Anderson Jr., chairman, president and CEO, who was allied with the McNeil Trust. Crivelli said Arrow is a valuable and respected brand and that the name would have a role in the combined portfolio.

Jeffrey P. Black, chairman and CEO of Teleflex, a manufacturer of commercial, medical and aerospace products, said the deal would make medical technology its largest revenue generator and make Teleflex a leading global player in that field. R. Ernest Waaser, president of Teleflex Medical, said the firms have little overlap in products, helping position the firm for growth.

Source: Reading Eagle (MCT)
Source: Factiva