Philips acquires India-based Meditronics

Wednesday 26th November 2008

Dutch firm Royal Philips Electronics has reached an agreement to acquire India-based Meditronics, a leading manufacturer of general X-ray systems targeting the economy segment in India.

Upon closing of this transaction in the fourth quarter of 2008, which is subject to certain contractual and other conditions such as regulatory approvals, Meditronics will become part of the Imaging Systems business within Philips's  Healthcare sector.

The announcement marks Philips's 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 Biomedica e Tecnologia and VMI Sistemas Medicos in Brazil.

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's high-quality proven economy segment product portfolio complements Philips's existing high-end general X-ray range and further strengthens Philips's 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 announcement is Philips's second acquisition within the last three months of a healthcare equipment maker in India specialised in supplying products for the economy segment - 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%.

Royal Philips Electronics