Philips acquires Indian x-ray manufacturer in further expansion in
emerging markets
24 November 2008
Royal Philips Electronics (NYSE: PHG, AEX: PHI) has announced it has
reached an agreement to acquire India-based Meditronics, a leading
manufacturer of general x-ray systems targeting the economy segment in
India.
Upon closure, expected in the fourth quarter of 2008, Meditronics
will become part of the Imaging Systems business within Philips’
Healthcare sector. Financial details were not disclosed.
The announcement marks Philips’ growing presence in high-growth
healthcare markets in emerging economies, and follows the earlier
acquisitions of healthcare companies Alpha X-Ray Technologies in India,
Chinese Shenzhen Goldway Industrial and Dixtal Biomédica e Tecnologia
and VMI Sistemas Medicos in Brazil.
Commenting on the deal, Philips Chief Executive Officer Gerard
Kleisterlee said: “The acquisition of Meditronics, just two months after
we announced the acquisition of Alpha, highlights our accelerating
efforts to expand our healthcare business in emerging markets and India
in particular. This underlines our conscious decision to step up
investments in these high-growth areas while also delivering on our
commitment to supply affordable healthcare solutions in emerging
markets.”
Meditronics’ high-quality proven economy segment product portfolio
complements Philips’ existing high-end General X-Ray range and further
strengthens Philips’ leading position in India’s high-growth imaging and
monitoring equipment market. Analysts estimate that the general x-ray
segment of the Indian market will show annual growth rates of 10% or
higher. Philips will invest to expand sales in the local Indian market
and will leverage its global distribution network to expand its offering
of economy x-ray products in other emerging and, importantly, mature
markets.
The acquisition is Philips’ second within the last three months of a
healthcare equipment maker in India specialised in supplying products
for the llocal economy — one of the fastest growing market segments in
the global healthcare equipment market. Philips announced in early
September the acquisition of Alpha, a leading manufacturer of
cardiovascular x-ray systems. Analysts estimate the economy segment of
the global cardiovascular x-ray market shows annual growth rates of 10%
to 15%.
“Executing on our strategic decision to scale up our presence in
emerging markets has been an important element of Philips’
transformation into a focused, less-cyclical company in recent years,”
said Mr. Kleisterlee. “We are committed to continue this course of
action by increasingly redirecting resources to help fuel growth in
emerging markets, and build out our industrial footprint in this
cost-effective and high-quality manufacturing environment — for
healthcare, but also for our Consumer Lifestyle and Lighting sectors.”
Under the stewardship of Mr Kleisterlee, Philips has transformed in
recent years into a much simpler and more focused company dedicated to
leveraging its deep consumer insight, technological prowess and
innovative strength to deliver uniquely differentiating propositions to
businesses and consumers.
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