CareFusion Corp. (NYSE: CFN), a leading, global medical technology company, today announced an agreement to acquire Intermed Equipamento Medico Hospitalar Ltda, a privately held, leading respiratory technologies company based in Sao Paulo, Brazil. Financial terms of the agreement were not disclosed.
Intermed designs, manufactures and markets a variety of ventilators and respiratory care devices for the full spectrum of infant, pediatric and adult patients that are used in hospitals in Brazil and across Latin America. Brazil, which has the world's sixth largest economy and fifth largest population, is experiencing growth in its health care sector through government investments, growth within the middle class and an increase in formal employment that provides greater access to health care services.
"The acquisition of Intermed complements our global respiratory product platform and advances our strategy to expand outside of the U.S. through investments that build scale and local capabilities in high-value markets," said Kieran Gallahue, chairman and chief executive officer of CareFusion. "Intermed brings a strong distributor network, local manufacturing capabilities and a new product portfolio that we believe can serve as a base for CareFusion to continue our global expansion efforts in Latin America."
Intermed complements CareFusion's offerings through a product platform that has been designed to address the unique needs and cost structure of Latin America and other emerging markets. Intermed will help accelerate CareFusion's globalization strategy with opportunities to leverage Intermed's existing distribution channels to offer additional CareFusion products in Brazil and across Latin America.
"For more than 30 years, Intermed has supported the evolving health care needs of Brazil through high-quality medical devices, and we are extremely proud of the company we have built," said Milton Rubens Salles, founder of Intermed. "CareFusion shares our values and passion to serve hospitals' and patients' respiratory needs and create additional opportunities for our people and products to continue to grow through investments in research and development and global expansion."
The acquisition of Intermed is part of CareFusion's strategy to deploy capital to accelerate long-term growth. Subject to customary conditions, the transaction is expected to close during CareFusion's fiscal second quarter, which ends December 31. The acquisition is expected to contribute approximately $25 million in revenue annually and be modestly dilutive to earnings for fiscal 2013, excluding deal-related amortization. The acquisition is expected to be neutral to fiscal 2014 earnings.