CareFusion eyes Brazilian market via Intermed acquisition
Medical technology company, CareFusion, has agreed to acquire Intermed Equipamento Medico Hospitalar, a privately-held respiratory technologies company based in Sao Paulo, Brazil. Financial terms of the agreement were not disclosed.
Intermed designs, manufactures and markets a variety of ventilators and respiratory care devices for the full spectrum of infant, paediatric and adult patients that are used in hospitals in Brazil and across Latin America. Brazil, which has the world's sixth largest economy and fifth largest population, is experiencing growth in its healthcare sector through government investments, growth within the middle class and an increase in formal employment that provides greater access to healthcare services.
Intermed reportedly complements CareFusion's offerings through a product platform that has been designed to address the needs and cost structure of Latin America and other emerging markets. Intermed will help accelerate CareFusion's globalisation strategy with opportunities to use Intermed's existing distribution channels to offer additional CareFusion products in Brazil and across Latin America.
The acquisition of Intermed is part of CareFusion's strategy to deploy capital to accelerate long-term growth. Subject to customary conditions, the transaction is expected to close during CareFusion's fiscal second quarter, which ends 31st December 2012. The acquisition is expected to contribute approximately US$25 million in revenue annually and be modestly dilutive to earnings for fiscal 2013, excluding deal-related amortisation. The acquisition is expected to be neutral to fiscal 2014 earnings.