Healthcare Industry News:  Getinge 

Devices Wound Care Acquisitions

 News Release - August 15, 2012

Getinge Group: Getinge Assumes Global Leading Position in Pressure Ulcer Prevention and Healing

Getinge, Sweden--(Healthcare Sales & Marketing Network)--Getinge (STO:GETIB) has today signed a definitive agreement with US-based Kinetic Concepts Inc. (KCI) to acquire KCIís Therapeutic Support Systems (TSS) business. Getinge is currently a major player in pressure ulcer prevention and healing in many European markets, while KCIís primary geographical area of strength is the North American market. The combination of Getingeís and KCIís TSS business creates a global platform with strong positions in most key markets, with significant potential for portfolio and operational synergies. The TSS portfolio and operations will be integrated into Getinge Extended Care under the ArjoHuntleigh brand.

About Therapeutic Support Systems

The TSS business includes a comprehensive portfolio of specialty therapeutic beds, mattress replacement systems and other support surfaces and patient mobility devices. TSS has a particularly strong portfolio for therapeutic wound care, bariatric care and critical care settings. TSS had revenues of USD 247 million in 2011, with approximately 1300 employees globally with sales locations in the US, Canada, Germany, Austria, Italy Switzerland, the UK and France. In 2011, the US market accounted for 60% of the TSS business, with Europe accounting for approximately 30%. Similar to Getinge Extended Careís Therapeutic Surfaces business, rental is the primary business model applied for serving customers in acute and post-acute care. The acquisition will enable Getinge Extended Care to achieve a balance between equipment sales and recurring revenues, and the business in the US will increase significantly, in line with its strategic goals.

ďThe acquisition of TSS provides an optimal extension of Getingeís Extended Care business, boosting the competencies of our operations. It has the potential to offer substantial value, innovation and choice to our customers around the world,Ē says Johan Malmquist, CEO, Getinge Group.

Sales and operational synergies

Integration of TSS with Extended Careís Therapeutic Surfaces business is expected to create operational synergies in sales, distribution operations, manufacturing and headquarter functions. The complementary nature of the two product portfolios is expected to generate channel synergies and increased customer value. TSS has strong positions in critical and bariatric care while Extended Careís focus has been in general care. Both portfolios have complementary products for Intensive Care Units (ICUs).

Financial effects

The acquisition of TSS takes the form of a carve-out, whereby Getinge purchases all assets and intellectual property associated to the TSS business. The acquisition price, debt-free, is USD 275 million (enterprise value), which corresponds to an EV/EBITDA multiple of 5.7x based on annual profit in 2011 on a stand-alone basis. Acquiring TSSís net assets will result in goodwill, which is fully tax deductible at a tax value of approximately USD 30 million (not included in the above-mentioned multiple). Transaction and restructuring costs will amount to USD 35 million, of which USD 25 million will be charged to Getingeís profit in the fourth quarter of 2012. The remaining USD 10 million will be charged next year. The acquisition is pending approval of the competition authorities in several countries and Getinge expects the transaction to be completed in the fourth quarter of 2012. The acquisition is expected to contribute to Getingeís profit per share in 2013, including restructuring and financing costs and goodwill adjustments. The transaction will be financed through a bridge loan.

Conference call

This announcement will be followed by a conference call at 10:00 CET, hosted by Johan Malmquist, CEO, Getinge Group, Ulf Grunander, CFO, Getinge Group, and Alex Myers, CEO, Extended Care.

To participate in the conference call, please dial:
Swedish dial-in numbers: +46 (0)8 5876 9445
UK dial-in numbers: +44 (0)20 7136 6283
Participant code: 3750840

Agenda 09:45 Call in to the conference
10:00 Presentation of the TSS acquisition
10.15 Q&A
11:00 Close of the conference

To access the presentation during the conference call, please use the below link:

http://www.livemeeting.com/cc/premconfeurope/join?id=3750840&role=attend&pw=pw6005

or enter the VisionCast site and log into the meeting using the Meeting ID and Password below:

VisionCast: http://www.euvision.com
Your name: (Enter your name)
Web Meeting ID: 3750840
Web Meeting Password: pw6005

A recorded version of the conference will be accessible for five working days at the following number: Sweden: +46 (0) 8 5051 3897 UK: +44 (0) 20 3427 0598 Code: 3750840

Getinge GROUP is a leading global provider of products and systems that contribute to quality enhancement and cost efficiency within healthcare and life sciences. We operate under the three brands of ArjoHuntleigh, Getinge and MAQUET. ArjoHuntleigh focuses on patient mobility and wound management solutions. Getinge provides solutions for infection control within healthcare and contamination prevention within life sciences. MAQUET specializes in solutions, therapies and products for surgical interventions, interventional cardiology and intensive care.

The information is such that Getinge AB must disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.


Source: Getinge AB

Issuer of this News Release is solely responsible for its content.
Please address inquiries directly to the issuing company.



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