Shanghai Fosun Pharma, the subsidiary of Fosun International, and Pramerica-Fosun China Opportunity Fund will pay $240 million for up to 95.6% of Israel-based Alma Lasers.
It is Fosun Pharma’s first international healthcare acquisition since its Hong Kong H-share listing in October last year. According to IMS Health Incorporated, Fosun was one of the top five domestic companies in China by revenue in the pharmaceutical manufacturing segment in 2011.
China is one of Alma Lasers’ main markets, where the firm has been active for the past decade and has become a leader in the high-end market segment for energy-based aesthetic medical devices.
“Fosun’s successful international M&A experience and strategic focus on healthcare and aesthetic and medical devices provide Alma Lasers with an exceptional platform to grow our business in Asia and globally,” said Alma Laser’s chief executive Ziv Karni, in a statement yesterday.
Meanwhile, Fosun Pharma said that it will continue its strategy of moving from product distribution to R&D and manufacturing, and aims to gain a leading position in the international aesthetic medical device market segment.
Alma Lasers is a leading global medical and cosmetic energy-based (including lights, laser, radio frequency and ultrasound) device manufacturer, with a global brand and a 15% share of the worldwide high-end aesthetic energy-based device market segment. Late last year it also entered the surgical energy-based device market, and plans to produce home-use energy-based devices.
The R&D team employs around 40 staff and has developed and registered 74 patents, with another 23 applications pending. Its 2012 revenues were nearly $100 million.
Fosun Pharma is optimistic about the growth prospects of the global medical and cosmetic energy-based device market, especially emerging markets such as Brazil, Russia, India and China, as well as other emerging markets.
“We are confident in the growth of the global aesthetics industry, especially in China, Brazil, Russia and India,” said Chen Qiyu, chairman of Fosun Pharma. “This represents a huge development space in developing countries. We will continue to support the global business development of Alma Lasers.”
Fosun Pharma will establish Alma Lasers as a management platform for the R&D, manufacturing and sales of high-end medical devices, providing an internationalised development path for the company.
The financial advisers for the transaction have not been named.