Teleflex completed the acquisition of Palette Life Sciences AB in October 2023 for $621.9 million, adding hyaluronic acid gel-based products for urological diseases. This acquisition expands Teleflex's presence in the interventional urology market.

The company completed the final phase of the Respiratory business divestiture to Medline in December 2023, receiving $15.0 million in additional cash proceeds. This divestiture aligns with Teleflex's strategy to focus on core business areas.

Teleflex initiated a new restructuring plan in Q4 2023, primarily involving the integration of Palette and workforce reductions, with expected pre-tax charges of $15-19 million. This plan aims to improve operating performance and align with evolving market demands.

Selling, general and administrative expenses increased by $66.2 million primarily due to higher sales expenses, operating expenses from acquired businesses and higher transaction costs related to the Palette acquisition.

The company began to experience stabilization with respect to some macroeconomic factors in late 2023 including lower logistics and distribution cost inflation and a decrease in staffing shortages at healthcare facilities.

The board approved the termination of the U.S. defined benefit plan (TRIP), with settlement expected in 2024. This action will reduce long-term liabilities and associated administrative costs. A settlement charge of $45.2 million was recognized in 2023.

Disruptions in sterilization of products or regulatory initiatives restricting the use of ethylene oxide in sterilization facilities could adversely affect operations and financial condition.

A significant portion of U.S. revenues is derived from sales to distributors, and destocking activity by these distributors can adversely affect revenues and results of operations.

The medical device industry is highly competitive, and failure to successfully develop and market new products could adversely affect the business. The future success of the business will depend, in part, on the ability to design and manufacture new products and enhance existing products.

The company believes that it competes primarily on the basis of clinical superiority and innovative features that enhance patient benefit, product reliability, performance, customer and sales support, and cost-effectiveness.

Teleflex faces competition from providers of alternative medical therapies, such as pharmaceutical companies.

The medical device industry is highly competitive. Teleflex competes with many domestic and foreign medical device companies ranging from small start-up enterprises to companies that are larger and more established than Teleflex.

The company has implemented a number of restructuring, realignment and cost reduction initiatives, including facility consolidations, organizational realignments and reductions in workforce, and may engage in similar efforts in the future.

Our operations, supply chain, contractors, suppliers, customers and other business partners are impacted by various global macroeconomic factors. During 2023, we continued to experience elevated levels of overall cost inflation, specifically within materials and services.

Many of our key products are manufactured at or distributed from single locations, and the availability of alternate facilities is limited. If operations at one or more of our facilities is suspended due to natural disasters or other events, we may not be able to timely manufacture or distribute one or more of our products at previous levels or at all.

The future success of our business will depend, in part, on our ability to design and manufacture new products and enhance existing products.

Our research and development efforts support our strategic objectives to provide innovative new, safe and effective products that enhance clinical value by reducing infections, improving patient and clinician safety, enhancing patient outcomes and enabling less invasive procedures.

Management has implemented a program focused on the assessment, identification, and management of material risks resulting from cybersecurity threats. The Program was developed and is managed by our Vice President of Information Security and Privacy with oversight from the Chief Information Officer.

The acquisition was financed using borrowings under our revolving credit facility and cash on hand.

Net cash used in investing activities from continuing operations was $621.2 million during 2023, which primarily consisted of $603.9 million in net payments for businesses and intangibles acquired, primarily related to the Palette acquisition, and $91.4 million of capital expenditures.

Net cash provided by financing activities from continuing operations was $38.5 million during 2023, which primarily consisted of $101.3 million in net proceeds from borrowings and also reflects $63.9 million in dividend payments.

Our Environmental Health and Safety (EHS) vision is to protect the safety and health of Teleflex personnel and the environments in which we operate. We have a vested interest in protecting our most valuable assets our employees.

We have initiated programs to track and lower our consumption of energy, water and gas as well as reduce waste and the use of hazardous materials.

Rooted in our Core Values, diversity, equity, and inclusion (DEI) plays an essential role in fulfilling our company core purpose to improve the health and quality of peoples' lives.

Moreover, the healthcare industry has been impacted by a transition in the delivery, or site of service, where healthcare services are being performed and staffing shortages at healthcare facilities that could impact the demand for our products in the future.

Political, economic and regulatory developments have effected fundamental changes in the healthcare industry. The Affordable Care Act substantially changed the way health care is financed by both government and private insurers.

Our international operations are subject to risks inherent in doing business outside the U.S., including exchange controls, currency restrictions and fluctuations in currency values; trade protection measures, tariffs and other duties; potentially costly and burdensome import or export requirements.