Covidien Selling Specialty Chemicals Unit

NEW YORK (AP) -- Health care products supplier Covidien said Wednesday it plans to sell its specialty chemicals business for $280 million in cash to an affiliate of New Mountain Capital, L.L.C.

Covidien's specialty chemicals business, which is based in Phillipsburg, N.J., makes and markets high-purity chemicals and related products for scientific research, electronics and environmental testing. Its product line generated $414 million in sales in 2009 and $216 million in the first half of fiscal 2010.

The deal is expected to close by the end of fiscal 2010. Covidien said the sale should decrease its earnings expectations for 2010 and 2011 by 9 cents to 11 cents per share.

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