DULUTH, Ga., Dec. 1 /PRNewswire-FirstCall/ -- Roper Industries, Inc. (NYSE: ROP - News) today announced that it has acquired MEDTEC, Inc., of Orange City, Iowa for approximately $150 million in cash.
MEDTEC designs, develops, and distributes enabling technologies essential for accurate diagnosis and treatment for cancer care. MEDTEC products include patient positioning devices, image-guided therapy software, and related products and accessories. With nearly 20 years of experience in the industry, including working closely with some of the most prestigious cancer treatment facilities around the world, MEDTEC has grown to be the recognized leader in enabling technologies for improved clinical outcomes, serving about 3,000 cancer care clinics globally. MEDTEC joins Roper’s expanding medical platform within its Imaging segment, which also includes CIVCO, acquired in June 2005.
“MEDTEC is an outstanding acquisition that further positions our Company in non-cyclical growth markets,” said Brian Jellison, Chairman, President and Chief Executive Officer of Roper Industries. “The business enjoys excellent growth, significant recurring revenues, strong margins and high cash returns. The addition of MEDTEC’s direct sales force, manufacturing capability and software engineering expertise immediately benefits CIVCO and also enables future bolt-on acquisitions for this emerging platform. The combination of MEDTEC and CIVCO creates the scale and synergies we have been seeking for Roper in the image-guided medical market. This will enable us to leverage the product development and distribution strengths of our businesses.”
MEDTEC and CIVCO together are expected to generate approximately $85 million of revenues in 2006. The MEDTEC acquisition is expected to be up to $0.05 accretive to diluted earnings per share performance in 2006 and generate approximately $17 million of EBITDA.
About MEDTEC/CIVCO
MEDTEC and CIVCO combined become a leading developer and supplier of a wide range of medical products and software used with multi-modality imaging equipment for diagnostic procedures, minimally invasive surgery and cancer therapy. Applications include radiology, urology, women’s health, general surgery, radiation oncology and cardiology. The combined business is an industry innovator, supplying cancer clinicians with cost-effective solutions that enable diagnostic and minimally invasive therapeutic procedures to improve patient outcomes. Strong relationships with leading OEMs and end users are expected to provide continued growth as the emerging trend toward multi-specialty/multi-modality procedures expands.
About Roper Industries
Roper Industries is a diversified industrial growth company with more than $1 billion of revenues. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications. Additional information about Roper Industries is available on the Company’s website at http://www.roperind.com.
The information provided in this press release contains forward looking statements within the meaning of the federal securities laws. These forward looking statements include, among others, statements regarding the prospects for newly acquired businesses to compete in their markets and contribute to future growth and profit expectations. Forward looking statements may be indicated by words or phrases such as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “should,” “will,” “believes” or “intends” and similar words and phrases. These statements reflect management’s current beliefs and are not guarantees of performance. They involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward looking statement. Such risks and uncertainties include our ability to integrate our acquisitions and realize expected synergies. We also face other general risks, including our ability to realize cost savings from our operating initiatives, unfavorable changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, risks associated with newly acquired businesses, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, environmental compliance costs and liabilities, risks and cost associated with asbestos related litigation and potential write-offs of our substantial intangible assets, risks associated with obtaining governmental approvals for new products and maintaining regulatory compliance for existing products, and the availability of third party reimbursements for products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Source: Roper Industries, Inc.
