Spacelabs Healthcare Completes Acquisition of Del Mar Reynolds Cardiology Business
August 01 2006 - 2:00AM
Business Wire
OSI Systems, Inc. (NASDAQ:OSIS) announced today that its healthcare
subsidiary, Spacelabs Healthcare, Inc., has completed its
acquisition of Del Mar Reynolds Limited and Del Mar Reynolds
Medical, Inc. (collectively, "DMR") representing the Cardiac
Division of Ferraris Group plc ("Ferraris"). Under the terms of the
agreement, Spacelabs paid Ferraris approximately GBP 14 million
($25.5 million) in cash, subject to an adjustment of plus or minus
GBP 1 million ($1.8 million) based upon revenue and EBITDA results
for DMR for the 13 month period ended September 30, 2006. In
addition, Spacelabs has agreed to a further earn-out provision
whereby Spacelabs would potentially pay Ferraris up to GBP 5
million ($9.1 million) if DMR achieves certain revenue targets in
fiscal 2007. Spacelabs has financed the acquisition through a
senior credit facility. OSI Systems' CEO, Mr. Deepak Chopra,
stated, "We welcome the customers, vendors and employees of DMR to
Spacelabs Healthcare. We look forward to DMR being a positive
contributor to our growth plans. The acquisition allows us to
expand our product portfolio to the hospital market, strengthen our
geographic presence in both the UK and German markets while also
allowing us to essentially double the geographic presence and
revenue of our Core Lab business for clinical trials." Spacelabs
Healthcare is comprised of several healthcare businesses, including
patient monitoring, anesthesia, pulse oximetry, osteoporosis
diagnostics, clinical trials and now cardiology. The cardiology
business will be headed by Gary Grenter, the current President of
DMR. About OSI Systems, Inc. OSI Systems Inc. is a Hawthorne,
California based diversified global developer, manufacturer and
seller of security and inspection systems, medical monitoring and
anesthesia delivery products, and optoelectronic-based components,
as well as a provider of engineering and manufacturing services.
The company has more than 30 years of experience in electronics
engineering and manufacturing and maintains offices and production
facilities located in more than a dozen countries. OSI Systems
implements a strategy of expansion by leveraging its electronics
and contract manufacturing capabilities into selective end product
markets through organic growth and acquisitions. For more
information on OSI Systems Inc. or any of its subsidiary companies,
visit www.osi-systems.com. About Spacelabs Healthcare, Inc.
Spacelabs Healthcare (www.spacelabshealthcare.com) is an
international developer, manufacturer and distributor of medical
equipment and services including patient monitoring solutions,
anesthesia delivery and ventilation systems, pulse oximeters and
sensors and bone densitometers selling to hospitals, clinics and
physicians offices. Additionally, the company provides ECG
laboratory services to pharmaceutical companies undertaking
clinical trials, whereby patient ECG data are recorded, analyzed,
tabulated and interpreted. The company has established brand names
in both medical devices and medical services such as "Spacelabs,"
"Blease" and "Dolphin." The company employs approximately 1,050
personnel in its 14 offices in the UK, Canada, France, Germany,
Finland, Singapore and the United States. The company conducts its
manufacturing and R&D in India, the UK and the United States.
About Del Mar Reynolds Del Mar Reynolds is a leading designer,
manufacturer and seller of non-invasive diagnostic cardiology
monitoring solutions for hospitals and clinics worldwide.
Additionally, the company provides ECG laboratory services to
pharmaceutical companies undertaking clinical trials, whereby
patient ECG data are recorded, analyzed, tabulated and interpreted.
The company specializes in Holter monitoring products including
Holter recorders, stress systems, ECG machines, trans-telephonic
ECG monitoring, ambulatory blood pressure monitoring, event
recording, apnea monitoring and information management systems. The
business employs approximately 233 personnel in its five offices
located in the UK, Germany and the United States. Del Mar Reynolds
is currently a wholly-owned subsidiary of Ferraris, a UK public
company listed in the Official List of the London Stock Exchange.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements include information regarding our expectations,
goals or intentions about the future, including, but not limited
to, statements regarding the acquisition of Del Mar Reynolds and
the benefits expected to arise following the closing. The actual
results may differ materially from those described in or implied by
any forward-looking statement. In particular, there can be no
assurance that the combined operations will in fact achieve any of
the currently expected benefits, such as expanded product
offerings, increased sales or improvements in the Core Lab
business, among other improvements. Other important factors are set
forth in the Securities and Exchange Commission filings of OSI
Systems, Inc. All forward-looking statements speak only as of the
date made, and we undertake no obligation to update these
forward-looking statements.
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