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Getinge acquires Chinese Acare Medical Science Ltd as a leap into to emerging markets
Friday, 15 June 2012
Today, Getinge signed a binding agreement to acquire all of the shares
of Acare Medical Science Ltd, a Chinese company that is primarily
geared toward the intermediary segment, mainly hospital beds. The
acquisition is in line with Getinge’s expressed strategy to increase
its presence in emerging markets and to offer a product range focused
on price-sensitive customer segments.
Getinge is a global provider of products and systems that contribute to
quality enhancement and cost efficiency within healthcare and life
sciences. They operate under the three brands of ArjoHuntleigh, GETINGE
and MAQUET. ArjoHuntleigh focuses on patient mobility and wound
management solutions. GETINGE on its part provides solutions for
infection control within healthcare and contamination prevention within
life sciences. MAQUET specializes in solutions, therapies and products
for surgical interventions and intensive care.
Acare Medical was formed in 1999, has its headquarters, including
product development and production, in ZhuHai, China. Its sales are
expected to total SEK 135 M in the current calendar year. Acare Medical
sells its products through a proprietary sales organisation in southern
China and through distributors in other regions of China. Customers
outside China account for about 30% of sales. Acare Medical has about
250 employees.
The purchase consideration for Acare Medical is SEK 180 M, corresponding to an EV/EBITDA multiple of nine.
The acquisition will be included in the Extended Care business area
and, combined with the business area’s products, will improve the
potential for growth in China. At the same time, Acare’s product
portfolio will be more relevant for many emerging markets in which the
business area’s existing products, market organisation and sales
channels are already established. Extended Care’s product portfolio
will also be made available to Acare’s customer segments and markets.
Acare is expected to continue to experience solid growth and will also
benefit from Extended Care’s already well-established sales
organisation in Asia, the
Acare Medical, whose impact on earnings in 2012 is expected to be
insignificant, will be included in the Getinge Group as of 1 July of
the current year. Acare Medical is expected to make a positive
contribution to the Group’s earnings per share in 2013.
Based on a press release
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