| | | | Philipsand VMI-Sistemas Medicos (VMI) have announced Philips will acquire VMI, a Brazilian imaging diagnostic company based in Minas Gerais, Brazil. Through this acquisition, Philips will become a leader in general x-ray in Brazil.The transaction is subject to regulatory approval, and is expected to close in the second quarter of 2007. No financial details on the transaction were disclosed. “By acquiring VMI, Philips can offer customers in Brazil and across Latin America a more complete medical diagnostic imaging product portfolio. This is our first acquisition of a healthcare company in a developing economy and it endorses the company’s global strategy of focusing on healthcare and investing in emerging markets, looking for solutions especially developed to address local needs" explained Mr. Steve Rusckowski, CEO of Philips Medical Systems. Between 2003 and 2006, growth in the Brazilian market for medical diagnostic imaging and monitoring equipment has been robust, expanding at close to 20% per year, compared to annual growth rates in the global market of between 4 and 5%. Since the first quarter of 2006, when Philips decided to start placing more emphasis on emerging markets and on solutions specially designed to address local needs, this is its first acquisition in a growth economy – Latin America. It will give Philips the opportunity of producing both analogical and digital x-ray equipment in Brazil and, as a result, offer more affordable solutions to the local market. Furthermore, the acquisition of VMI will help grow Philips’ overall presence in Latin America further, since Philips plans to boost VMI’s Brazilian exports to other countries in Latin America, which at the moment represent approximately 5% of VMI’s business. |
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