In early June, medical device maker Covidien
Only a few weeks later, Covidien is making splashes once more -- this time announcing it plans to acquire small-cap device maker Somanetics
According to BMO analyst Joanne Wuensch, "Covidien management has been very straightforward about the game plan, which has been to sell off lower margin businesses and buy higher margin businesses. And they continue to do so."
Both purchases seem to make sense for Covidien from a tactical perspective: The question remains whether or not the strategy will bear enough fruit through expanded products and synergies to justify such hefty price tags.