Royal Philips Electronics acquires Respironics; largest acquisition

Source: Exec Digital USA

Date :21/12/2007 02:50:46

Royal Philips Electronics buys U.S. medical products maker Respironics Inc.for $5.1 billion.

Philips said today it will commence a tender offer to acquire all of the outstanding shares of Respironics for $66 per share, or a total purchase price of approximately $5.1 billion to be paid in cash upon completion.

‘This transaction will firmly place Philips as a global leader in the fast-growing home healthcare market,’ the Dutch company said.

Strategic fit

Murraysville, Philadelphia-based Respironics makes respiratory products, including ventilators.

Philips chief executive Gerard Kleisterlee (pictured) said the company was an "excellent strategic fit and will significantly drive our growth in healthcare both in the hospital and in the home.”

“The combination of Respironics and Philips will allow us to continue to provide exceptional products and services to our customers and allow Respironics to expand its leadership in the global sleep and respiratory markets,” said John L. Miclot, President and Chief Executive Officer of Respironics.

Healthcare acqusitions

Philips announced plans earlier this month to buy two other medical services companies, Visicu for $403 million, and Emergin for an undisclosed amount.

Respironics, based in Murrysville, Pennsylvania, USA, is the leading provider of innovative solutions for the global sleep therapy and respiratory markets.

December 21, 2007