Getinge acquires Maquet - global leader in surgical tables - as platform for a new business area with significant growth
- New business area –
Surgical Systems – with interesting growth potential
- Maquet – market leader
with a strong brand name
- High degree of know-how and
competence in Surgical Systems
- Significant synergies –
improved EPS
- Getinge in strong position
for continued expansion through acquisitions
- Maquet’s sales for
1999/2000 were EUR 156 million
Getinge has today signed a
conditional agreement for the acquisition of all shares in Maquet
AG Germany, a subsidiary of RWE AG, (Rheinisch Westfälisches
Elektrizitätswerk, a German Multi Energy Group) . Maquet is the
world leader in surgical tables with a 30% share of the world
market and with a well established brand name synonymous with
innovative strength and quality for more than a century. Maquet
will make up the foundation of Getinge’s new business area Surgical
Systems.
Surgical Systems – a
natural complement
Equipment for operating theatres is a natural complement to
Getinge’s existing activities within infection control. By
the increased use of minimally invasive surgical procedures,
there is also an increased need - mainly regarding expensive and
delicate instruments such as endoscopes – to be able to
disinfect and sterilize those instruments safely and quickly
between operations. Surgical tables and equipment for infection
control make up the equipment infrastructure equipment within
healthcare, and managers in both areas are often one and the
same.
Getinge is already active on a
small scale in the field of Surgical Systems which
includes the manufacture of surgical tables and surgical lamps
for the US market.
"Through the acquisition of
Maquet, Getinge increases its ability to be an attractive
supplier to healthcare, this is especially important in the US
where customers are mainly organised in large chains or
purchasing organisations. This is a trend that can be expected to
breakthrough in Europe as well," says Getinge’s
President and CEO Johan Malmquist. Surgical Systems has been
noted as a strategically interesting growth area for the Getinge
Group. I am very pleased and cannot imagine a more solid base
than that of Maquet to expand Getinge’s new business
area."
Maquet AG has its head office
in Rastatt, Germany and has sales of around EUR 155 million and
employs 1,300
Production is run from Rastatt and Peiting, Germany. The product
range consists of surgical tables, around 72% of sales, and
infection control equipment, around 5% of sales. Service makes up
around 17% of sales. "Caspar" has been marketed for
three years and is Maquet’s self-developed operation robot
for orthopedic implants. The product makes up around 6% of sales.
Maquet is divided into those two
divisions – Surgical Systems and Computer Surgery (robotic
activities).
Maquet’s products are
marketed through the company’s subsidiaries in Germany,
France, UK, Belgium, Italy, USA and Japan. Around 90 agents and
distributors carry out distribution.
Synergies
The combination of Getinge and Maquet creates a very strong
marketing and sales organisation with great synergy in
distribution and marketing. Getinge’s marketing organisation
in the US, in combination with Maquet’s strong product
range, will offer a great deal of growth potential. In Germany,
where Getinge’s position in infection control has been
historically weak, Maquet’s strong presence will create a
powerful infrastructure for further expansion. The opportunities
to distribute Getinge’s newly developed operating lamp
(Castle® FiberLux™) through Maquet’s global
sales organisation are considered to be very good.
Continued expansion
The global market for surgical tables and operating lamps as well
as related products is around SEK 8 billion. The market is
unstructured to a large degree with many small, local
manufacturers. It is Getinge’s ambition to take an active
part in the future structuring and consolidation of this market.
Sales and profit
During the last financial year (July 99 – June 00)
Maquet’s sales were EUR 156.4 million, EBITDA was EUR 14.6
million and EBIT EUR 6.3 million. Surgical Systems’ achieved
sales of EUR 147.8 million, EBITDA of EUR 19.8 million and EBIT
of EUR 13.7 million. Computer Surgery achieved sales of EUR 8.6
million and reported an operating loss of EUR 7.4 million due to
high development spending.
Approximately 80% of sales were
generated in Europe, while North America and Asia/Pacific
represented 7% and 9% respectively. The remaining sales were
attributable to Africa and the Middle East.
Financial effects
The acquisition is expected to have a positive impact on the
Group’s earnings per share during 2001. Maquet will be part
of the Getinge Group from 1 January 2001. The cost of the shares
will be EUR 91 million.
At the time of the acquisition
there were no outstanding bank liabilities in the Maquet Group.
The consolidated group accounts include pension provisions of
around EUR 125 million reflecting Maquet’s future pension
commitments.
Financing the acquisition
The acquisition of Maquet will be financed by external loans of
which 25% will be re-financed by a new share issue with
preferential rights for Getinge shareholders during spring 2001.
Terms and conditions
The acquisition is conditional upon approval by the German
competition authorities and formal approval by RWE’s board
of directors at the board meeting planned for 23 November 2000.
Getinge, 17 November 2000
Johan Malmquist
President and CEO
For further information please
contact Johan Malmquist, phone No +46-35 15 55 00
You may also visit our web site: http://www.getinge.com
Getinge Industrier
Getinge is a medical-technical Group and a world leader
in the fields of infection control for healthcare, the
pharmaceutical industry and laboratories, as well as hygiene and
lifting systems for hospitals and geriatric care. The Group had
sales of SEK 4,885 million in 1999 and 3,800 employees.
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