Ahmedabad (Gujarat) [India], May 15 (ANI): Multi-specialty hospital Shalby said on Saturday it has entered into a definitive agreement to acquire certain assets from California-based Consensus Orthopedics for a cash consideration of 11.45 million dollars (about Rs 85 crore).
The assets were acquired by Shalby Advanced Technologies Inc, a wholly-owned subsidiary of Mars Medical Devices, which in turn is a wholly-owned subsidiary of Shalby.
Consensus designs and manufactures orthopedic implants and instruments with sales predominantly in North America. Key customers include hospitals, surgeons and wholesale distributors.
The company has completed over 1.6 lakh joint replacement procedures with zero recalls.
The acquired assets are primarily comprised of inventory and plant and equipment. Product inventory includes knee systems, mobile bearing knee systems, hip systems and revision knee systems.
The manufacturing plant and equipment consists of machining and finishing (60,000 components per annum), inspection (75,000 to 80,000 components per annum) and cleaning, packaging and sterilisation (1.5 lakh components per annum).
Shalby is a leading hospital in hip and knee replacement surgeries in India with 15 per cent market share in private hospitals offering joint replacements.
"This acquisition is a strategic milestone in the history of Shalby and will enable us to diversify our core hospital healthcare services business into related and high-growth implant product offerings," said Chairman Vikram Shah.
"The synergies between businesses are compelling and will return immediate benefits of sourcing quality implants into India across our hospital group. This corporate development is fully in line with our stated strategy to grow our orthopedic business," he said in a statement.
The transaction is expected to be earnings accretive in FY2023. (ANI)