CareFusion Corporation Buys Intermed for Undisclosed Amount
Published: Oct 08, 2012
Intermed designs, manufactures and markets a variety of ventilators and respiratory care devices for the full spectrum of infant, pediatric 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 health care sector through government investments, growth within the middle class and an increase in formal employment that provides greater access to health care services.
"The acquisition of Intermed complements our global respiratory product platform and advances our strategy to expand outside of the U.S. through investments that build scale and local capabilities in high-value markets," said Kieran Gallahue, chairman and chief executive officer of CareFusion. "Intermed brings a strong distributor network, local manufacturing capabilities and a new product portfolio that we believe can serve as a base for CareFusion to continue our global expansion efforts in Latin America."
Intermed complements CareFusion's offerings through a product platform that has been designed to address the unique needs and cost structure of Latin America and other emerging markets. Intermed will help accelerate CareFusion's globalization strategy with opportunities to leverage Intermed's existing distribution channels to offer additional CareFusion products in Brazil and across Latin America.
"For more than 30 years, Intermed has supported the evolving health care needs of Brazil through high-quality medical devices, and we are extremely proud of the company we have built," said Milton Rubens Salles, founder of Intermed. "CareFusion shares our values and passion to serve hospitals' and patients' respiratory needs and create additional opportunities for our people and products to continue to grow through investments in research and development and global expansion."
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 December 31. The acquisition is expected to contribute approximately $25 million in revenue annually and be modestly dilutive to earnings for fiscal 2013, excluding deal-related amortization. The acquisition is expected to be neutral to fiscal 2014 earnings.
About CareFusion Corporation
CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. The company develops market-leading technologies including Alaris® infusion pumps, Pyxis® automated dispensing and patient identification systems, AVEA®, AirLife and LTV® series ventilation and respiratory products, ChloraPrep® products, MedMined® services for data mining surveillance, V. Mueller® surgical instruments, and an extensive line of products that support interventional medicine. CareFusion employs more than 15,000 people across its global operations. More information may be found at www.carefusion.com.
Intermed is a Brazilian company dedicated to developing, manufacturing and selling medical equipment with emphasis on mechanical lung ventilation and anesthesia. Products offered by Intermed are designed for life support of neonatal, pediatric and adult patients. The Intermed quality system and its product line are certified according to international standards regarding quality, safety and performance. Intermed was founded in 1982 in Sao Paulo, Brazil, where its headquarters are located. The company has distributors and authorized technical services in Brazil and in more than 20 countries.
Cautions concerning forward-looking statements
The CareFusion news release and the information contained herein contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. The matters discussed in these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. Forward looking statements include, but are not limited to, statements about the timing of the anticipated acquisition, the potential benefits and synergies of the anticipated acquisition, including the expected impact on future financial and operating results, and post acquisition plans and intentions. The forward-looking statements contained herein are based on the current expectations and assumptions of CareFusion and Intermed and not on historical facts. The following important factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the satisfaction of conditions to closing the agreement; the risk that the businesses will not be integrated successfully; and the risk that benefits and synergies from the acquisition may not be fully realized or may take longer to realize than expected. Additional factors that may affect future results are described in CareFusion's Annual Report on Form 10-K for the fiscal year ended June 30, 2011, and in other filings by the company with the U.S. Securities and Exchange Commission. Except to the limited extent required by applicable law, CareFusion undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE CareFusion Corp.