- EBOS Group will enter the medical device sector, following the purchase of LMT and National Surgical businesses for $34 million
- The deal provides EBOS with an entry into the $8 billion Australian and New Zealand medical device sector
- LMT and National Surgical have developed a niche in bringing new specialty products, into Australia, New Zealand and the Pacific region
- EBOS is up 0.17 per cent and is selling shares for $23.18 apiece
EBOS Group will enter the medical device sector, following the purchase of Life. Movement. Technology (LMT) and National Surgical businesses for $34 million.
The acquisition provides EBOS with an entry into the $8 billion Australian and New Zealand medical devices sector.
LMT and National Surgical were co-founded by Jon Mills and Kerry Lawford. Over the past 24 years, businesses have built a strong presence in Australia and New Zealand.
The businesses have been providing products and services to the Orthopaedic, Spine, Neuro, ENT, Plastics and most recently the Sports Medicine community.
LMT and National Surgical have developed a niche in bringing new specialty products, produced by original equipment manufacturers (OEM’s), into Australia, New Zealand and the Pacific region.
EBOS is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products.
It is also a leading marketer and distributor of recognised consumer products and animal care brands.
EBOS CEO John Cullity says the acquisition represents an important development in the company’s first steps in building another significant platform.
“Medical device distribution presents a natural adjacency to our existing capability and offers strong economic fundamentals and promising organic growth rates,” John said.
“Our strategy is to target specific therapeutic areas focused on ‘personalised healthcare’ which means quicker and more effective screening, diagnosis and treatment leading to better healthcare service for our communities,” he added.
Co-founders Jon and Kerry said they were delighted with the respective businesses they have founded have been purchased by EBOS Group.
“We look forward to working with a bigger team, with more capital and the ability to leverage EBOS’s strong relationships with healthcare networks throughout Australia and New Zealand to provide existing and new customers with a wider scope of service,” they said.
The business is expected to bring in a revenue of approximately $40 million. The acquisition is not expected to have a material effect on the financial year 2020 earnings.
The acquisition is expected to meet EBOS’s return on the capital employed hurdle of 15 per cent within two years.
“Consistent with our proven strategy we will continue to grow our presence through further bolt-on acquisitions,” John said.
“As a truly independent partner we can provide long term growth opportunities to both existing and new OEM’s as we bring experienced management, capital resources and strong hospital relationships in the Australia and Zealand market,” he added.
EBOS is up 0.17 per cent on the Australian Securities Exchange and is selling shares for $23.18 apiece at 4:38 pm AEDT.