Royal Philips Electronics has acquired Shenzhen Goldway Industrial, a Chinese patient monitoring company, for an undisclosed sum.
Goldway, which is the second largest patient monitor company in China, will become part of the patient monitoring business within Philips’ Healthcare sector. The deal is expected to be completed in the second quarter of 2008.
The acquisition expands Philips’ presence in China’s growing healthcare market and provides the company with an export platform to other emerging markets. The Chinese healthcare market is growing at 10% a year.
Philips is the market leader in the global patient monitoring market, which in 2007 was estimated to be approximately €2 billion (or approximately $3 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.”
She added: “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.”
Philips believes the deal will strengthen its presence in the growing market for economy and middle range patient monitors.
“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,” said Zeng Jinchuan, general manager of Goldway.