Philips acquires medical equipment co Meditronics

Philips has acquired Mumbai-based medical equipment maker Meditronics for an undisclosed amount, its second buy in healthcare segment in three months.

The Dutch firm which operates three businesses, lighting, healthcare and consumer electronics and appliances, had acquired another Mumbai-based firm Alpha X-Ray Technologies in September.

Both Meditronics and Alpha are medical imaging companies targeting the economy segment of the Indian market. Alpha manufactures cardiovascular X-ray systems and Meditronics makes general X-ray systems.

Philips global CEO Gerard Kleisterlee said at a press conference in Delhi, “The Meditronics acquisition strengthens our presence in India and gives us strong manufacturing capabilities.”

Meditronics, started by Kanti Gada and Vinod Vora in 1979, focuses on surgery and radiography. It employs around 150 people and has four manufacturing units in India. This deal is Philips’ fifth healthcare acquisition in emerging markets in the past two years.

Besides Alpha in India, Philips has acquired two firms in Brazil and and one in China. Sharing his views on the global economic slowdown, Mr Kleisterlee said, “There is clearly a slowdown in developed markets and we are not immune to it. But healthcare is recession-proof so we are safe.”

“There is a bigger slowdown in the US and Europe for consumer durable products. But some essential segments such as mother and babycare products and electric shavers are doing well. Big-ticket items such as LCD televisions are seeing a slowdown in demand,” he added.

Mr Kleisterlee said Philips is looking to shift ‘resources’ such as people, advertising budget and investments in R&D from developed to emerging markets in the wake of the global slowdown: “Emerging markets will play a crucial role in driving growth in future.”

He declined to elaborate on the measures that Philips was taking to overcome the difficult economic conditions except that he wouldn’t mind rightsizing in some markets.

Source: clickjobs.com Contributed by: DMSMedwire Research JSG Team