Getinge acquires Acare Medical Science Ltd of China as part of strategy to increase exposure to emerging markets
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.
About Acare Medical
The company, which 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 transaction
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 Middle East and Africa.
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.
For further information, please contact:
Alex Myers
Executive Vice President, Extended Care
Telephone: +46 (0)722104653 Alex.Myers@ArjoHuntleigh.com