Wednesday, October 10, 2012

Carefusion acquires Brazili based medical equipment manufacturing company Intermed Medical Equipment Hospital Limited

Intermed is into manufacturing of products for infant, pediatric and adult respiratory solutions. They are primarily into manufacturing of ventilators and accessories for ventilators.

Although the terms of the deal have not been disclosed, but Carerfusion has indicated that the deal would add $25m in annual sales and would be dilutive to to FY13 earnings and neutral in FY 2014.. Hence we assume the deal value should be anywhere in the range of $60m to $80m.

Acquisition rational for Carefusion
1) Cross Sell Carefusion existing products through Intermed existing distribution network in Brazil
2) Expand Intermed's product reach to a larger market (emerging markets)