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Philips to bid 3.6 billion for U.S. medical company Respironics(Associated Press WorldStream Via Thomson Dialog NewsEdge) AMSTERDAM, Netherlands_Royal Philips Electronics NV said Friday it would bid around 3.6 billion (US$5.1) billion for Respironics Inc., a maker of medical devices that assist or monitor breathing. Philips said it would offer US$66 (94.99) per share for Respironics, a 24 percent premium to the company's closing price of US$53.11 (US$76.44) on Thursday, in an offer endorsed by Pennsylvania-based Respironics' board. "Respironics is an excellent strategic fit and will significantly drive our growth in health care both in the hospital and in the home," said Philips Chief Executive Gerard Kleisterlee in a statement. Shares fell 1.3 percent to 30.32 (US$43.64) in Amsterdam. Philips said that Respironics had about US$1.2 billion in sales over the year ended Sept. 30, and was growing both sales and margins at close to 20 percent annually. The bulk of Respironics' sales come from selling devices that people with respiratory problems use in the home to diagnose or treat sleep breathing problems. Millions of people suffer from sleep apnea, in which breathing temporarily stops during sleep. It has been linked to heart disease and diabetes. Philips said the tender offer period was to begin Jan. 8, and the deal is expected to close some time in the first quarter of 2008, pending approval from shareholders and regulators. The acquisition is one of a steady stream of takeovers of U.S. companies by Philips' medical arm, which rivals General Electric Co. as the world's largest medical equipment maker. Most of the acquisitions have been focused on patient monitoring in hospitals and homes. Last week, the company bid 430 million (US$619 million) for Maryland-based Visicu, which makes patient monitoring equipment. In October, it bought Raytel Cardiac Services, a Connecticut-based home heart-monitoring service, from Raytel Medical Corp., for US$110 million (78 million). In January 2006, Philips announced the US$750 million (521 million) purchase of Massachusetts-based Lifeline Systems Inc., which sells a phone service that allows patients at home to contact medical help in case of an emergency. On a conference call, CEO Kleisterlee said Philips would have around 8 billion (US$11.5 billion) in medical sales in 2008, if all the companies it has recently acquired were consolidated for the whole year. "So that's not exactly one-to-one with what you will see in our reporting next year ... but it indicates the size of the building we have constructed," he said. Kleisterlee said Philips intends to continue to "look for targeted acquisitions" in the medical market. Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |