Mindray Medical International Limited (NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, announced today an agreement to acquire a controlling stake of Shenzhen Shenke Medical Instrument Technical Development Co. Ltd. The terms of the transaction were not disclosed as the transaction is non-material to Mindray's financial statements.
Founded in 2004 and based in Shenzhen, China, Shenke Medical is one of the leading infusion pump manufacturers in China. The company also manufactures syringes and infusion monitoring management systems. Infusion pumps are medical devices that deliver fluids, including nutrients and medications such as antibiotics, chemotherapy drugs, and pain relievers, into a patient's body in controlled amounts. It is widely used in ICUs, pediatric offices, emergency rooms and operating rooms. The syringe pump and infusion pump market in 2009 was estimated to be around $76 million in China with an annual growth rate of approximately 20%. The international market in 2009 was estimated to be around $1 billion with an annual growth rate of approximately 10%. About 100 employees from Shenke will be added to Mindray, and the combined company will have more than 6,900 employees in total. Shenke currently sells its products in China as well as international markets.
Mindray expects to achieve synergies in the transaction by combining its strong engineering, manufacturing, sales and management platforms with Shenke's brand name, technology and expertise in the infusion pump area. "We are excited about this transaction and believe that our collaboration will benefit both Mindray and Shenke," said Mr. Minghe Cheng, Mindray's Chief Strategic Officer. "We expect Shenke's infusion pump products to complement Mindray's patient monitoring and life support product line in providing total solutions to our customers. Together, the companies will be able to tailor their product functionalities better in order to meet end-user requirements."
Mr. Qun Gu, General Manager of Shenke, will maintain his position. The other management team is expected to stay without significant changes along with the rest of the staff.
Regarding the transaction, Mr. Qun Gu said, "The addition of our business to Mindray's patient monitoring and life support product line will allow us to better serve the customers and give us a stronger position to compete in the market place. We expect that Shenke will continue to provide high quality products and services to our customers and we look forward to build a stronger platform as we become a member of Mindray's global operations."
Mindray Medical International Limited