November 10, 2010 / 6:38 PM / 9 years ago

Covidien hopes to do another vascular device deal

Richard Meelia, Chairman, President, Chief Executive Officer and a Director of Covidien Ltd., speaks at the Reuters Health Summit in New York, November 10, 2010. REUTERS/Brendan McDermid

NEW YORK (Reuters) - Covidien Plc COV.N, which has been bulking up its medical device business through acquisitions, hopes to do another deal in the fast-growing vascular treatment area, its chief executive said on Wednesday.

Covidien earlier this year paid $2.6 billion to buy vascular device maker ev3, which specializes in treatments for neurovascular diseases such as stroke and peripheral vascular problems in vessels outside the heart and brain.

Speaking at the Reuters Health Summit on Wednesday, Covidien CEO Richard Meelia said he remains interested in the vascular space as a source of additional acquisitions to accelerate the company’s growth rates, although any future deals will be smaller in size.

“I sure hope we can announce a tuck-in deal in vascular. We are looking a lot,” Meelia said.

In assessing potential acquisition candidates, Covidien will look to avoid some of the larger device markets such as orthopedic, spine, cardiac and diagnostics and focus on deals in areas that are closer to its main businesses, Meelia said.

“There are plenty of opportunities to expand through acquisitions without getting into other spaces,” he said.

The company also has sold product lines since its spinoff from Tyco International Ltd TYC.N three years ago.

“The major moves are done. We don’t plan to execute on any major divestitures in 2011,” Meelia said.

Reporting by Susan Kelly and Debra Sherman. Editing by Robert MacMillan

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