Medtronic Says Omar Ishrak To Remain Chairman, CEO After Covidien Acquisition

(RTTNews) - Medical device maker Medtronic, Inc. (MDT) said Friday that Omar Ishrak will remain as chairman and chief executive officer of the new company, Medtronic plc, following the close of its proposed acquisition of smaller rival Covidien plc (COV).

In June, Medtronic agreed to buy Covidien in a cash and stock deal valued at about $42.9 billion. The deal, which will help Medtronic shift base to Ireland and save it from paying high U.S. corporate taxes, is expected to close in the fourth calendar quarter of 2014 or early 2015.

Medtronic said the new company will be comprised of four major business groups and four geographic regions led by a new Executive Committee.

The four business groups of the new company will be led by Mike Coyle, executive vice president and president of the Cardiac and Vascular Group, Hooman Hakami, executive vice president and president of the Diabetes Group, and Chris O'Connell, executive vice president and president of the Restorative Therapies Group. Bryan Hanson, currently group president, Covidien, will become executive vice president and president of the fourth major business group, a newly formed Covidien Group, upon close.

In addition to the new Covidien Group, the current Peripheral Vascular business from Covidien, including the Endovascular, Arterial and CVI businesses, will be integrated into the CVG's Aortic and Peripheral Vascular business after the close of the deal. Upon close, Covidien's Neurovascular business will be integrated into the RTG as an independent business unit. More details regarding the specifics of these organizational changes will be announced over time.

Upon the close of the deal, the new company will organize into four major regions. Bob White will become senior vice president and president of Medtronic Asia Pacific, based in Singapore. Mike Genau will become senior vice president and president of Medtronic's Americas Region, including Canada, Latin America, and the United States. Rob ten Hoedt will serve as executive vice president and president, of the Europe, Middle East, and Africa region. Chris Lee, president of Medtronic Greater China, will continue to lead the Greater China market as senior vice president and president, upon the close of the deal.

The functions represented on the current Medtronic Executive Committee will not change and will continue to be led by the current Medtronic leaders after the deal closes. The functional leaders include Gary Ellis, executive vice president and chief financial officer, Rick Kuntz, senior vice president and chief scientific, clinical and regulatory officer, and Brad Lerman, senior vice president, general counsel, and corporate secretary, among others.