Philips to acquire Chinese patient monitoring company Shenzhen Goldway Industrial, Inc.

  • Acquisition expands Philips’ presence in China’s growing healthcare market and offers export platform to other emerging markets
  • Deal strengthens Philips’ presence in growing market for economy- and mid-range patient monitors

 

Amsterdam, the Netherlands and Shenzhen, China – Royal Philips Electronics (AEX: PHI, NYSE: PHG) (“Philips”) today announced it has reached an agreement with the shareholders of Shenzhen Goldway Industrial, Inc. (“Goldway”) to acquire all outstanding shares in Goldway. Financial details of the transaction were not disclosed. The transaction is expected to close in the second quarter of 2008, upon which Goldway will become part of the Patient Monitoring business within Philips’ Healthcare sector. Philips is the market leader in the global patient monitoring market, which in 2007 was estimated to be approximately EUR 2 billion (or approximately USD 3 billion). 

 

Deborah DiSanzo, Senior Vice President and General Manager of Philips’ Patient Monitoring business said: “Philips already has a leading position in the premium segment of China’s patient monitoring market. This acquisition offers us a perfect opportunity to further strengthen our position in China and to increase our presence in other emerging markets. Goldway has a track record of providing excellent medical devices that are complementary to Philips’ existing patient monitoring product base, not only for the Chinese market, but for export to other value-conscious, high-growth markets around the world.” 

 

Goldway offers patient monitoring solutions that range from basic standalone to more fully-equipped monitors, including products that have been FDA approved in the United States or carry the “CE” certification in Europe. In addition, Goldway has a strong dealer network, hospital focused service capabilities as well as cost effective manufacturing operations that all contribute significantly to its competitive position. Acquiring Goldway will secure Philips a broader presence in the Chinese healthcare market, which is estimated to be growing at approximately 10% per year.

 

“Goldway has established a strong position in the Chinese market, and is on track to growing further both within China and beyond. Becoming part of a global healthcare company like Philips is for us the perfect step to maximize this growth opportunity in a very interesting geographical market. We are very confident that we share the same culture, business goals and commitment to the market to make this happen. We have much to learn from each other, and much that can be leveraged between us,” said Mr. Zeng Jinchuan, General Manager of Goldway.

 

Goldway is the second largest domestic patient monitoring company in China with excellent access to mid- and large-size hospitals throughout the country. Employing a staff of 290, the company grew its 2007 sales by approximately 30 percent.

For more information, please contact:

Jayson Otke

Philips Corporate Communications
Tel:  +31 20 5977215   
Email:  jayson.otke@philips.com

Andre Manning

Philips Healthcare
Tel:  +1 646 508 4545   
Email:  andre.manning@philips.com

Christina TH Zhang

Philips China
Tel:  +86 10 85273080   
Email:  christina.th.zhang@philips.com

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering people-centric, innovative products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 123,800 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2007, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, as well as lifestyle solutions for personal wellbeing. News from Philips is located at www.philips.com/newscenter.


About Shenzhen Goldway

Shenzhen Goldway Industrial, Inc., (Goldway), which was founded in 1995 in Shenzhen, China, is a medical instrument company focused on solutions for medium and small hospitals and clinics in price sensitive markets.  Products include a full range of patient monitors for both acute and non-acute care, solutions for women’s health, and anesthesia machines. Goldway is the second largest domestic patient monitoring company in China, with sales to over forty countries worldwide in 2007. The company, which has the distinction of being the first company from China to achieve FDA certification for two of its patient monitors, holds CE certifications for several of its products and meets international quality standards for ISO 9001, ISO 13485, EN 46001


Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this press release will completed. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.  Any forward-looking statements in this announcement are based upon information known to Philips on the date of this announcement. Philips undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.