Royal Philips Electronics has announced that it has reached an agreement with the shareholders of Shenzhen Goldway Industrial, Inc. to acquire all outstanding shares in Goldway.
Financial details of the transaction were not disclosed. The transaction is expected to close in the second quarter of 2008, when Goldway will become part of the patient monitoring business within Philips' healthcare sector. Philips is a market leader in the global patient monitoring market, which in 2007 was estimated to be approximately EUR2 billion.
Deborah DiSanzo, senior vice president and general manager of Philips' patient monitoring business said, "Philips already has a leading position in the premium segment of China's patient monitoring market. This acquisition offers us a perfect opportunity to further strengthen our position in China and to increase our presence in other emerging markets. Goldway has a track record of providing excellent medical devices that are complementary to Philips' existing patient monitoring product base, not only for the Chinese market, but for export to other value-conscious, high-growth markets around the world."
Goldway offers patient monitoring solutions that range from basic standalone monitors to more fully-equipped monitors, including products that have been FDA approved in the United States or carry the "CE" certification in Europe. In addition, Goldway has a strong dealer network, and hospital focused service capabilities as well as cost effective manufacturing operations that all contribute significantly to its competitive position. Acquiring Goldway will secure Philips a broader presence in the Chinese healthcare market, which is estimated to be growing at approximately 10% per year.
"Goldway has established a strong position in the Chinese market, and is on track to growing further both within China and beyond. Becoming part of a global healthcare company like Philips is for us the perfect step to maximize this growth opportunity in a very interesting geographical market. We are very confident that we share the same culture, business goals and commitment to the market to make this happen. We have much to learn from each other, and much that can be leveraged between us," said Zeng Jinchuan, general manager of Goldway.
