First Quality Retail Services, LLC, a group member of First Quality Enterprises, Inc., a healthcare and non-woven products company of the U.S. has completed the acquisition of the consumer healthcare retail products business of COVIDIEN Ltd, the U.S.- based global healthcare products company. This acquisition is targeting production and sales of baby disposable diaper products, adult incontinence and female hygiene products with private brand. First Quality announced in December 2007 that it would acquire the retail products business of COVIDIEN, the biggest healthcare manufacturer in North America, with the investment of $335 million. Covidien's Retail Products business, headquartered in King of Prussia, Pennsylvania, had sales of $744 million in fiscal 2007.

Because of First Quality Nonwovens, Inc., a polypropylene spunbond nonwoven manufacturer, which is under First Quality Enterprises, spunbond nonwoven manufacturers in North America, especially the ones which have been supplying nonwoven materials to COVIDIEN, have been paying close attention to this acquisition action.

With the completion of the acquisition, it is clear that First Quality will increase the ratio of captive consumption of its own nonwoven materials, and as a result, a major supply shift in the spunbond market in North America can be expected. First Quality Nonwovens is currently progressing with the establishment of new spunbond lines by introducing Reicofil's multibeam machine at its Hazleton firm in Pennsylvania. The group has not revealed its future captive consumption ratio of nonwoven materials or any expansion plans.

First Quality has been supplying nonwoven material to Procter & Gamble and Kimberly Clark among major healthcare companies, but has never had a deal with COVIDIEN.