Key Stats
- Founded on June 29, 2007 as a spinoff from Tyco International
- Headquarters located in Dublin, Ireland
- Peak revenue of $11.6 billion in fiscal year 2011
- Employed over 41,000 workers across 70 countries at peak operations
- Acquired by Medtronic for $42.9 billion on January 26, 2015
Covidien Plc was a global healthcare products company that developed, manufactured, and sold medical devices and supplies. The company operated three main business segments before its acquisition. These included Medical Devices, Pharmaceuticals, and Medical Supplies.
Based in Dublin, Ireland, Covidien sold products in more than 150 countries worldwide. The company held leadership positions in surgical instruments, patient monitoring equipment, and respiratory care products.
Covidien traced its roots to Tyco Healthcare, which itself grew from the historic Tyco International conglomerate. The separation allowed the healthcare business to focus entirely on medical innovation and growth.
Covidien History
The Covidien story spans decades of healthcare innovation, from its origins as part of a larger conglomerate to becoming an independent global medical device leader.
Covidien Key Executives
Two executives shaped Covidien’s trajectory from spinoff to acquisition. Their leadership transformed the company into a global medical device powerhouse.
Meelia joined Kendall Healthcare Products Company in 1991 and became President of Tyco Healthcare in 1995. He grew the business from $600 million to nearly $9 billion in revenue. Meelia served as CEO and President of Covidien from the 2007 spinoff until July 2011, also serving as Chairman from October 2008 to March 2012.
Almeida joined Tyco Healthcare in 1995 as Director of Manufacturing. He led the Medical Devices segment from 2006, growing it at a 9% compounded annual rate. Almeida became CEO in July 2011 and Chairman in March 2012, guiding Covidien through the Medtronic acquisition until January 2015.
Covidien Revenue
Covidien demonstrated consistent revenue growth during its years as an independent company. The 2013 spinoff of Mallinckrodt pharmaceuticals adjusted the revenue base to focus on medical devices.
The company reached peak revenues of $11.6 billion in fiscal 2011, reflecting strong performance across all segments. After the pharmaceuticals spinoff, the streamlined company maintained revenues above $10 billion annually.
Covidien Market Cap
Covidien’s market capitalization grew steadily from its 2007 IPO through the 2015 acquisition. The company’s stock traded on the New York Stock Exchange under the symbol COV.
The final closing stock price was $106.71 on January 26, 2015, the day the Medtronic acquisition closed. This represented an all-time high for the company and significant value creation for shareholders.
Covidien Competitors
Covidien competed against major medical device and healthcare companies globally. The company held strong positions in surgical instruments, patient monitoring, and respiratory care markets against well-established players including Johnson and Johnson and Boston Scientific.
| Company | Headquarters | Primary Focus |
|---|---|---|
| Baxter International | Deerfield, Illinois | Hospital products, renal care |
| Stryker Corporation | Portage, Michigan | Orthopedics, surgical equipment |
| Edwards Lifesciences | Irvine, California | Heart valves, critical care |
| Teleflex | Wayne, Pennsylvania | Surgical instruments, vascular access |
| Smith and Nephew | London, United Kingdom | Wound care, orthopedics |
| Becton Dickinson | Franklin Lakes, New Jersey | Medical supplies, diagnostics |
| Abbott Laboratories | Abbott Park, Illinois | Cardiovascular, diagnostics |
| C.R. Bard | Murray Hill, New Jersey | Vascular, urology products |
| ICU Medical | San Clemente, California | Infusion therapy, critical care |
| Masimo Corporation | Irvine, California | Patient monitoring, pulse oximetry |
Covidien Acquisitions
Covidien pursued an aggressive acquisition strategy to expand its product portfolio and market presence. The company completed dozens of acquisitions during its years as an independent entity, targeting innovative medical technologies and geographic expansion opportunities.
Major deals in 2009 included VNUS Medical Technologies, a leader in minimally invasive venous disease treatment, for approximately $440 million. That same year, Covidien acquired Aspect Medical Systems, a brain monitoring device manufacturer, for $210 million. Somanetics, specializing in regional oxygen saturation monitors, joined the portfolio in 2010 for $250 million.
The year 2012 marked Covidien’s most active acquisition period. The company purchased three Israeli medical device companies in rapid succession. superDimension, developing pulmonary endoscopes for lung cancer diagnosis, cost $350 million. Oridion Systems, a capnography monitor maker, added another $346 million. PolyTouch, focused on hernia mesh technology, completed the trio for $30-40 million.
The BÂRRX Medical acquisition in early 2012 brought technology for treating Barrett’s esophagus. Newport Medical Instruments, a ventilator manufacturer, joined Covidien that same year. This purchase later drew attention during the COVID-19 pandemic due to questions about the ventilator development program.
Covidien continued acquiring through 2014, adding Given Imaging’s capsule endoscopy business, WEM Electronic Equipment in Brazil, and Zephyr Technology’s wearable sensors. These strategic purchases strengthened the company’s position across multiple medical device categories before the Medtronic merger.
FAQs
What happened to Covidien?
Medtronic acquired Covidien for $42.9 billion in January 2015. The combined company became the world’s largest medical device maker by revenue, headquartered in Dublin, Ireland.
When was Covidien founded?
Covidien was founded on June 29, 2007 when Tyco International spun off its healthcare division as an independent publicly traded company on the New York Stock Exchange.
What products did Covidien make?
Covidien manufactured surgical instruments, patient monitoring devices, respiratory care products, vascular devices, and medical supplies used in hospitals and healthcare settings worldwide.
Where was Covidien headquartered?
Covidien was headquartered in Dublin, Ireland after reincorporating there in June 2009. The company maintained operational headquarters in Mansfield, Massachusetts.
How many employees did Covidien have?
At its peak, Covidien employed more than 41,000 people worldwide across more than 70 countries. Products were sold in over 150 countries globally.