STOCKHOLM Aug 15 Swedish medical technology
group Getinge said on Wednesday it would buy the
Therapeutic Support Systems business of Kinetic Concepts Inc.
for $275 million as it looks to expand in the key
Getinge, whose products range from surgical tables and
anaesthesia systems to heart-lung support equipment, has been on
an acquisition trail in the last decade, buying seven companies
in 2011 alone as it looks to expand its global reach.
The purchase of Kinetic's TSS business will significantly
boost Getinge in the U.S., which accounted for just less than a
third of the Swedish company's total sales of 22 billion crowns
($3.3 billion) in 2011.
"The combination of Getinge's and KCI's TSS business creates
a global platform with strong positions in most key markets,
with significant potential for portfolio and operational
synergies," Getinge said in a statement.
Getinge said it expected the deal to boost earnings per
share in 2013.
TSS, which makes therapeutic beds, mattress replacement
systems and patient mobility devices, had revenues of $247
million in 2011 with the US market accounting for 60 percent of
sales, and Europe around 30 percent.
Getinge said the integration of TSS would lead to synergies
where product portfolios overlapped but would also extend its
product lines, especially in critical care and in surgical
The acquisition will lead to transaction and restructuring
costs of $35 million, of which $25 million will be charged in
the fourth quarter.
The transaction will be financed through a bridge loan.