CareFusion Corp. (CFN), a U.S. maker of medical technology that helps people breathe, agreed to buy closely held Brazilian respiratory device company Intermed Equipamento Medico Hospitalar Ltda.
Terms of the deal weren’t disclosed today in a joint statement announcing it.
U.S. health-care companies have been buying assets in Brazil to take advantage of the country’s growing economy and market for drugs, medical services and equipment. UnitedHealth Group Inc. (UNH) also announced today it would spend $4.9 billion to buy 90 percent of Amil Participacoes SA (AMIL3), a Brazil-based insurer and hospitals operator that gives the American company a stake in the world’s second-biggest emerging economy.
“Intermed brings a strong distributor network, local manufacturing capabilities and a new product portfolio that we believe can serve as a base for CareFusion to continue our global expansion efforts in Latin America,” CareFusion Chief Executive Officer Kieran Gallahue said in the statement announcing the deal.
The purchase is expected to close by the end of the year, will add about $25 million to San Diego-based CareFusion’s yearly annual sales and be “modestly dilutive” to fiscal 2013 earnings, the company said in the statement. Intermed is based in Sao Paolo.
CareFusion shares rose less than 1 percent to $28.62 at the close in New York.
Brazil’s private health-care market is expanding faster than any other country’s except the U.S., the two insurers said in a joint release.
To contact the reporter on this story: Drew Armstrong in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Reg Gale at email@example.com