Getinge Group: Getinge finalises acquisition of US-based Therapeutic Support
GETINGE, Sweden -- November 08, 2012
Getinge has received approval from the relevant regulatory bodies to complete
the acquisition of Kinetic Concepts Inc.’s TSS division. The acquisition was
finalised on 8 November 2012, and will be consolidated into Getinge’s accounts
as of 1 November 2012.
The TSS business includes a comprehensive portfolio of specialty therapeutic
beds, mattress replacement systems and other support surfaces and patient
mobility devices. TSS has a particularly strong portfolio for therapeutic
wound care, bariatric care and critical care settings. In 2011, TSS generated
sales of USD 247 million and the operation employs nearly 1,300 individuals
TSS has proprietary sales companies that are primarily located in the US,
Canada, Germany, Austria, Italy, Switzerland, the UK and France. In 2011, the
US market accounted for 60% of TSS’ revenues, while Europe accounted for about
30%. Similar to Getinge Extended Care’s Therapeutic Surfaces business, rental
is the primary business model applied for serving customers in acute and
post-acute care. The acquisition will enable Getinge Extended Care to achieve
a balance between equipment sales and recurring revenues, and the business in
the US will increase significantly, in line with its strategic objectives.
The acquisition of TSS takes the form of a carve-out, whereby Getinge
purchases all assets and intellectual property associated to the TSS business.
The acquisition price, debt-free, is USD 275 million (Enterprise Value), which
corresponds to an EV/EBITDA multiple of 5.7x based on annual profit in 2011 on
a stand-alone basis. Acquiring TSS’s net assets will result in goodwill, which
is fully tax deductible at a tax value of approximately USD 30 million (not
included in the above-mentioned multiple). Transaction and restructuring costs
will amount to USD 35 million, of which USD 25 million will be charged to
Getinge’s profit in the fourth quarter of 2012. The remaining USD 10 million
will be charged to next year. The acquisition is expected to contribute to
Getinge’s profit per share in 2013, including restructuring and financing
costs and goodwill adjustments. Aside from the transaction and restructuring
costs described above, the acquisition is not expected to contribute to
earnings in 2012.
GETINGE GROUP is a leading global provider of products and systems that
contribute to quality enhancement and cost efficiency within healthcare and
life sciences. We operate under the three brands of ArjoHuntleigh, GETINGE and
MAQUET. ArjoHuntleigh focuses on patient mobility and wound management
solutions. GETINGE provides solutions for infection control within healthcare
and contamination prevention within life sciences. MAQUET specializes in
solutions, therapies and products for surgical interventions, interventional
cardiology and intensive care.
The information is such that Getinge AB must disclose in accordance with the
Swedish Securities Market Act and/or the Financial Instruments Trading Act.
This information was brought to you by Cision http://www.cisionwire.com
For further information, please contact:
CEO, Getinge Group
Telephone: +46 10335 55 33
CFO, Getinge Group
Telephone: +46 10335 55 80
CEO, Extended Care
Telephone: +46 10335 46 53
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