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| Acquiring Party | Royal Philips Electronics (NYSE: PHG; AEX: PHI), a large international electronics manufacturer with substantial interests in medical imaging, patient monitoring and diagnostics. |
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| Transferring Party | Respironics, Inc. (Nasdaq: RESP), a manufacturer of products serving sleep and respiratory markets. |
| Sector | Medical Devices |
| Date | December 21, 2007 |
| Analysis Respironics expected to significantly drive Phililps Health Care's growth in the hospital and home monitoring markets. Millions of people suffer from sleep apnea, in which breathing temporarily stops during sleep. The condition has been linked to heart disease and diabetes. The acquisition is one of many takeovers of U.S. companies by Philips' medical arm, which competes with GE as the world's largest medical equipment maker. Philips recently bid $619m for Visicu Inc., which makes patient-monitoring equipment. Earlier in 07, it bought Raytel Cardiac Services, a home heart-monitoring service, from Raytel Medical Corp. for $110m, and a $1.4b purchase of Intermagnetics General Corp., which makes magnets used in medical imaging devices. Deal value -- $5.1b, on TTM sales of $1.24b (4.1x) and EBITDA of $246.21m (20.7x). While Respironics sales and profits have been growing significantly, Philips will need to reap major synergy benefits given the hefty price. | |
The Walden Group is a leading healthcare investment banking firm specializing in mergers, acquisitions and strategic transactions. It also invests its own funds and, together with its expert operational partners, provides value-added services to help special companies reach critical milestones. This information is copyright © 2004-2007 The Walden Group, Inc. This information is provided as a service to the public but remains the intellectual property of The Walden Group, Inc and may not be reproduced in any manner without the written permission of The Walden Group, Inc. The information contained in the transactions table was derived from publicly available and other sources. Transaction analysis and other information are based, in part, upon public comments, Walden Group research and judgments, and reporting and research of others. The information is not intended to be relied upon as pronouncements by the transaction participants or for any other reason. | |