Med tech firm Getinge buys U.S. therapeutic bed firm for $275 million
STOCKHOLM (Reuters) - Swedish medical technology group Getinge (GETIb.ST) said on Wednesday it would buy the Therapeutic Support Systems business of Kinetic Concepts Inc. CRGYHK.UL for $275 million as it looks to expand in the key U.S. market.
Getinge, whose products range from surgical tables and anesthesia systems to heart-lung support equipment, has been on an acquisition trail in the last decade, buying seven companies in 2011 alone as it looks to expand its global reach.
The purchase of Kinetic's TSS business will significantly boost Getinge in the U.S., which accounted for just less than a third of the Swedish company's total sales of 22 billion crowns ($3.3 billion) in 2011.
"The combination of Getinge's and KCI's TSS business creates a global platform with strong positions in most key markets, with significant potential for portfolio and operational synergies," Getinge said in a statement.
Getinge said it expected the deal to boost earnings per share in 2013.
TSS, which makes therapeutic beds, mattress replacement systems and patient mobility devices, had revenues of $247 million in 2011 with the US market accounting for 60 percent of sales, and Europe around 30 percent.
Getinge said the integration of TSS would lead to synergies where product portfolios overlapped but would also extend its product lines, especially in critical care and in surgical weight-loss procedures.
The acquisition will lead to transaction and restructuring costs of $35 million, of which $25 million will be charged in the fourth quarter.
The transaction will be financed through a bridge loan. ($1 = 6.6957 Swedish crowns)
(Reporting by Simon Johnson)
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