CareFusion is expanding into Brazil, having inked a deal to buy a device company there focused on ventilators and other respiratory care products. In the grander scheme of things, the acquisition satisfies the company's plans to grow globally, in part, by way of Latin America.
San Diego-based CareFusion ($CFN) didn't disclose financial details regarding its plans to acquire Intermed Equipamento Medico Hospitalar. But the details they share reveal two common threads: compatibility and a built-in regional distribution network. CareFusion makes infusion pumps, patient ID systems, ventilation and respiratory devices and surgical instruments. Intermed manufactures and sells lung ventilation, anesthesia and other kinds of medical equipment. Founded in 1982 in São Paulo, Intermed also maintains distributors and technical services operations in Brazil and 20 other countries, according to the deal announcement--a built-in infrastructure CareFusion can rely on rather than expanding solely on its own.
"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," CareFusion CEO Kieran Gallahue said in a statement.
If all goes well, plans call for closing the sale by the end of CareFusion's 2013 second quarter (Dec. 31, 2012), and the acquisition should contribute about $25 million in revenue annually to CareFusion's bottom line.
Though CareFusion has endured recalls and device security concerns in recent months, the company still booked $110 million in its fiscal 2012 fourth quarter, 29% higher than the same period in 2011. Strong sales of respiratory products, plus a slashing of selling and administrative expenses, helped the company boost its revenue by a conservative 3% during the quarter.
- here's the release