Getinge acquisition gives world-leading position in respirator technology
Getinge AB has today signed a
binding agreement for the acquisition of Siemens LSS (Life
Support Systems). The acquisition is conditional upon approval
from the relevant competition authorities.
Unique platform for Getinge
Surgical Systems
Siemens LSS is a division of Siemens Medical Solutions, one
of the largest suppliers to the healthcare industry in the world.
Siemens LSS develops, manufactures and markets ventilators and
anaesthesia equipment for the hospital market.
Siemens LSS is expected to
generate a sales turnover of around EUR 205 million during the
current financial year, which ends on 30 September. Siemens LSS
employs around 720 people worldwide, of which around 400 work at
the headquarters in Solna, Sweden, where the division’s
centre for product development, manufacturing and marketing is
also located. Siemens LSS sells medical technology equipment to
around 100 countries annually, having its own sales companies on
all significant markets.
Siemens LSS, along with the German
company Draeger Medical, is the global market leader for
ventilation machines for the hospital market, with a market share
of almost 30%. In the anaesthesiology product area LSS’
market share is around 6% globally and puts the company in third
place after Instrumentarium of Finland and Draeger of Germany.
Over the past few years Siemens
LSS has shown sound volume growth driven by successful product
launches of ventilation machines. The operating margin for
current activities is around 11%.
The acquisition of Siemens LSS
is a unique opportunity for Getinge to integrate another world-leading
medical technology business into Surgical Systems
"The acquisition of Siemens LSS is a unique opportunity
for Getinge to integrate one more world-leading medical
technology business into our most expansive area, Surgical
Systems. Siemens LSS meets all the criteria we consider important
for an acquisition – a strong product range, wide-ranging
skills and focus, a strong market position and a broad geographic
platform. In addition, its business has a strong Swedish base,
making this deal even more pleasing," says Johan Malmquist,
Getinge’s CEO.
Strong profit contribution
Getinge will pay around EUR 150 million for Siemens LSS, and
in addition will assume net assets worth around EUR 50 million.
The cost of integrating Siemens
LSS is expected to be at most EUR 25 million, resulting in a
goodwill value of around EUR 175 million.
Assuming that the necessary
approval from the relevant competition authorities is obtained
according to plan, then Siemens LSS will be consolidated into
Getinge’s accounts from October this year.
The financing of the acquisition
will be carried out using Getinge’s existing credit
facilities.
Siemens LSS is expected to
contribute to profits before tax of EUR 10-12 million in 2004 and
EUR 17 - 20 million in 2005. The long-term goal is for Siemens
LSS’ operating margin after goodwill to be 15%.
Getinge, 15 August 2003
For further information:
Johan Malmquist, President and CEO - tel. +46 (0)35 15 55 00
GETINGE is a
leading provider of equipment and systems to customers within
health care, extended care and pharmaceutical industries/laboratories.
Equipment, services and technologies for infection control,
operating theatres, patient hygiene, patient handling and wound
care are supplied to customers throughout the world. In 2002 the
Getinge Group had net sales of approx. SEK 8.6 billion with 5.600
employees.
Internet http://www.getinge.com
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