STOCKHOLM, Sweden, August 15, 2003 (PRIMEZONE) -- Getinge AB (Other OTC:GNGBF) 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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