Leading health care products maker Covidien ( COV - Analyst Report ) recently completed its takeover of Israel-based medical devices firm Oridion Systems Ltd. for $310 million, net of cash and investments acquired. Covidien expects Oridion’s offerings and technology to broaden its respiratory product line.

Per the agreement, all of Oridion’s outstanding capital stock has been acquired by Covidien. The company plans to report the acquired entity in its Oximetry and Monitoring product line, which is a part of its larger Medical Devices segment. Earlier, in April, the company stated that it does not expect the deal to materially impact revenues, margin and earnings per share in 2012.

Oridion Systems generated revenues of $64 million in 2011. Its offerings check sufficiency of ventilation. They permit medical practitioners to quickly gauge problems in airway passages. Some of its leading products include the Microstream capnography enabled monitors and the etCO₂ breath sampling offerings.

Covidien is a leading global health care products company with a rich history of developing high-quality products in a cost-effective manner. It competes with Johnson & Johnson ( JNJ - Analyst Report ) , Becton Dickinson ( BDX - Analyst Report ) and C.R. Bard ( BCR - Analyst Report ) , among others.

Revenues from Covidien’s core Medical Devices segment climbed 6% year over year to $1.98 billion in the most recent quarter, driven by double-digit growth across Vascular and Energy Devices product lines. Revenues from the Oximetry and Monitoring sub-segment rose 4% to $220 million driven by higher sales of monitors.

Covidien remains committed to rolling out new products and technologies, focusing on the emerging markets, and boosting market share in core segments through investments in sales and marketing infrastructure. However, sustained pricing/procedure volume pressure represents a headwind.

We currently have a Neutral recommendation on Covidien, which is in tandem with a Zacks #3 Rank (Hold).