UPDATE 1-Teleflex to sell wire rope business for $50 mln

* To sell Rigging Services business to Houston Wire & Cable

* Says deal to reduce FY rev, profit

* To focus on medical technology products

May 27 (BestGrowthStock) – Diversified manufacturer Teleflex Inc
(TFX.N: ) said it agreed to sell its rigging services business to
Houston Wire & Cable (HWCC.O: ) for $50 million to focus on
medical technology products, and cut its full-year outlook.

The sale is expected to reduce Teleflex’s 2010 earnings by
about 15 cents a share, and revenue by about $90 million,
Teleflex said in a statement.

The rigging services business supplies heavy-duty wire
rope, wire and synthetic rope assemblies, and related rigging
hardware products.

Teleflex said its two rigging service businesses, Southwest
Wire Rope and Southern Wire, had revenues of about $80 million
in 2009.

Separately, Houston Wire & Cable said it expects to finance
the deal through borrowings under its existing credit facility.

The companies expect the deal to close before the end of
the second quarter.

Shares of Teleflex closed at $55.12 Wednesday on the New
York Stock Exchange on Wednesday, while those of HWCC closed at
$10.14 on Nasdaq.

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(Reporting by Divya Sharma in Bangalore; Editing by Gopakumar

UPDATE 1-Teleflex to sell wire rope business for $50 mln