Coloplast acquires Comfort Medical, a US direct-to-consumer nationwide dealer of catheters and ostomy supplies, for USD 160m. The acquisition is a continuation of Coloplast’s ambition to bring innovative products and services to the US market.
Coloplast has entered into a definitive agreement to acquire Comfort Medical, LLC (Comfort Medical) for a cash consideration of USD 160m equal to approx. DKK 1,120m.
Comfort Medical is a privately owned, US direct-to-consumer Durable Medical Equipment (DME) nationwide dealer of catheters and ostomy supplies founded in Florida in 2010. The acquisition is a continuation of Coloplast’s ambition to bring innovative products and services to the US market.
"The acquisition of Comfort Medical fits very well into our overall consumer ambition for Coloplast in the US, securing continued access to innovative technology for end users. Comfort Medical has a strong patient acquisition model and an efficient and scalable setup in addition to a strong management team with a good cultural fit to Coloplast," says Lars Rasmussen, Coloplast’s CEO.
Comfort Medical’s business model is based on capturing patients through Direct Response Advertisement and physician referrals. Comfort Medical provides patients with products from a number of different manufacturers including Coloplast. The company is expected to record sales of USD 38m or approx. DKK 270m for the full-year 2016.
"I am excited about the future prospects of our US business and view this acquisition as an additional building block in the implementation of our US strategy," Lars Rasmussen says.
The transaction is expected to contribute to Coloplast’s long-term growth ambition and is expected to close in the first quarter of 2016/17. The acquisition will, if completed and approved by authorities, lead to a revised financial guidance for the financial year 2016/17:
The organic revenue growth guidance of 7-8% is unchanged. The growth in DKK of 5-6% is expected to be 1-2%-points higher.
The EBIT margin guidance of 33-34% in constant exchange rates and about 33% in DKK is unchanged. ?
The long-term guidance of 7-9% organic growth p.a. and an EBIT margin expansion of 0.5%-1.0%-points p.a. is unchanged.
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