Covidien will sell its sleep therapy continuous positive airway pressure (CPAP) and bi-level products to PH Invest, a privately held company located in Luxembourg.

Several products, which are sold under the GoodKnight and Sandman brands, are included in this agreement. The agreement excludes the sleep interface products sold and marketed under the brand names Adam, Breeze, and Dreamfit, which will continue to be sold by Covidien. Financial terms of this transaction were not disclosed.

This transaction, which is subject to customary closing conditions, is expected to be completed in the next 90 days and is not expected to have a material effect on operating income or earnings per share for 2010 or 2011.

The decision to divest these product lines was made following a thorough review and evaluation of a number of strategic alternatives, according to a Covidien statement. The company also stated that the decision is consistent with its strategy to streamline its portfolio and reallocate resources to its faster-growing, higher-margin businesses, where the company has, or can develop, a global competitive advantage.