STOCKHOLM, Sweden, May 22, 2003 (PRIMEZONE) -- Getinge (Other OTC:GNGBF) continues its expansion within Surgical Systems entering the cardiopulmonary market.
Getinge has acquired 100% of the shares of Jostra AG Getinge has signed an agreement to acquire 100% of the shares of Jostra AG. Jostra is a leading manufacturer of equipment and disposables for open-heart surgery. With this move Getinge continues its intended expansion of the business area Surgical Systems. The acquisition is conditional on the approval by German competition authorities and does not include Jostra's US activities.
The existing activities of Surgical Systems as a global leader in advanced surgical work-stations for all surgical disciplines will now be complemented with a leading range of therapy products for cardiac surgery.
Jostra had sales of around 90 million Euro in 2002 and employs 600 persons Jostra was founded in 1982. The company had sales of around 90 million Euro in 2002 and has 600 associates. Headquarters and some production are located in Hirrlingen, Germany. Jostra has manufacturing plants in Lund (Sweden), Vaerlose (Denmark) and Hechingen (Germany). Jostra supplies its products to more than 100 countries and has own sales companies in Germany, France, Italy, Netherlands, Japan, Canada, Spain, UK, Sweden, China and Hong Kong.
A leading supplier with strong market shares The range of products includes heart-lung machines, oxygenators, catheters, cannulae and related disposables. Jostra is one of the world's three leading suppliers of single-use products and heart-lung machines for open-heart surgery, with a market share of 25% for heart-lung machines and 15% for disposables (25% in Europe).
Acquisition Financials
The price for the shares is 23.6 million Euro and assumed net debt is EUR 36.4 million. Restructuring costs are estimated to be around 15 million Euro. The goodwill amounts to 37 million Euro.
Getinge's target is to improve Jostra's EBIT margin after goodwill amortization to 12-15% in a three-year period. Contribution to group earnings in 2003 will be slightly negative to neutral (depending on date of consolidation with Getinge). Contribution to group pre-tax profit including goodwill amortization and related financial charges will be in the range of 5-6 million Euro in 2004.
Getinge, 22nd May 2003
Johan Malmquist, President and CEO
CONFERENCE CALL TODAY
A conference call hosted by Johan Malmquist and CFO Ulf Grunander will be held today at 10:00 a.m. Swedish time. To take part please call +44 (0) 207 162 0180, password: Getinge
A slide presentation for the tele conference will be available on www.getinge.com
A recorded version of the conference can be accessed for 5 working days on +44 (0)20 8288 4459, access code: 735842
Getinge is a leading provider of equipment and systems to customers within health care, extended care and pharmaceutical industries/laboratories. Equipment, services and technologies for infection control, operating theatres, patient hygiene, patient handling and wound care are supplied to customers throughout the world. Getinge represents sales of 8.6 billion SEK with 5,600 employees.
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