Omron Corporation Set to Acquire Colin Medical Technology Corporation in June 2005
Kyoto, Japan (ots/PRNewswire)
Omron Corporation announced today that it will acquire all shares of Colin Medical Technology Corporation (CMT) (Komaki, Japan) from Carlyle Group (Washington D.C.) and other stockholders through its wholly owned company, Omron Healthcare Co., Ltd. (Kyoto, Japan). The acquisition is planned for June 2005.
Through this acquisition, Omron Healthcare will own CMT's medical devices for healthcare professionals, such as bio-information monitors, inpatient blood pressure monitoring devices and vascular screening devices, in addition to Omron Healthcare's home healthcare products, including blood pressure monitors and body fat analyzers.
Omron Healthcare will become a unique company offering a wide variety of medical devices in operation rooms, hospitals, and the home and anticipates creating a new market by connecting medical workplaces and patient homes.
"Omron predicted a shift within the medical market from treatment to prevention," said Mr. Hisao Sakuta, representative director and CEO of Omron Corporation. "To respond to this change, we spun off the healthcare business in 2003 and accelerated our business goals and began exploring partnership opportunities. With CMT reestablishing its business foundation by the support of Carlyle, we believe Omron Healthcare and CMT can establish a complementary relationship with both products and in markets."
Since Omron Healthcare's spin off, it has shown steady growth and reached 50.6 billion yen in sales and 7.6 billion yen in profit in the fiscal year ending 2005. The global market volume for healthcare devices for home use, such as blood pressure monitors, body fat analyzers, thermometers and nebulizers is expected to grow steadily from 113.5 billion yen in FYE 2004 to 150 billion yen in FYE 2011.
However, because Omron Healthcare has already achieved high market share and the increasing competition caused by Asian low-cost manufacturers, Omron Healthcare seeks new business domains for continued growth. Through this acquisition, Omron Healthcare will accelerate its growth and increase profit, aiming at 75 billion yen in sales and more than 15 percent growth in sales' profit in FYE 08.
Since October in 2003, Carlyle has been proactively involved in supporting CMT, including sending Carlyle's employees to CMT's office in Komaki. Carlyle has also supported CMT to solve distribution stock issues from the former company, patent litigation and follow-up legal procedures, while looking for business alliances with global corporations to improve CMT's corporate value. As a result, CMT was able to achieve approximately 300 million yen in operating profits in FYE 05.
"Because Omron Healthcare values CMT's corporate culture and independence as well as presented business synergies, we and CMT's management team decided a stock transfer was a great opportunity for all," said Mr. Tamotsu Adachi, managing director of Carlyle. "We are pleased to have realized a prompt rejuvenation and a structure for growth."
As the population ages especially in the developed countries, the number of patients with life-style related diseases, such as hypertension and diabetes is increasing and preventive medicine has been promoted as a government measure in many countries. Therefore, the preventive medicine market, which connects the home and the medical workplace, will emerge and create additional business opportunities for Omron Healthcare such as:
-- Establishing a new market of hardened arteries monitoring by combining
CMT and Omron Healthcare's technology and devices;
-- Creating a preventive medicine care support system utilizing a
management program for life style-related diseases and medical
devices; and
-- Searching opportunities and commercializing the business of connecting
the home and medical workplaces.Omron Healthcare's acquisition is also intended to expand its current business by:
-- Expanding its blood pressure monitoring business
-- Continuing to strengthen its brand by promoting its blood pressure
monitoring technology and products for the medical workplace
(operation rooms and hospitals) and home use;
-- Developing next generation blood pressure monitoring technology; and
-- Increasing sales of CMT's products overseas.In addition, Omron Healthcare will maximize its synergies with CMT, while respecting its current management and employees. However, the acquisition intends to strengthen CMT products' cost competitiveness by:
-- Exploring group-purchasing of materials;
-- Considering using Omron Healthcare's manufacturing sites; and
-- Possibly centralizing logistics"With consistent and strong support from Carlyle, we have solved many issues, rejuvenated faster than expected and are a top manufacturer of blood pressure monitors for medical use," said Mr. Yuzo Kambe, president and COO of CMT. "We believe this relationship will let us enter new business domains and expand our business, which we could not have successfully completed alone."
"In addition, we will come closer to realize CMT's mission 'Reducing Clinical Accidents to one out of every hundred (1/100)' and 'Reducing the numbers of bedridden elderly people by half'," added Mr. Kambe.
About Omron Healthcare Co., Ltd.
Headquartered in Kyoto, Omron Healthcare Co., Ltd. (Representative Director and CEO: Keiichiro Akahoshi) is a wholly owned subsidiary of Omron Corporation, Japan's largest control components and systems manufacturer. Specialized in healthcare equipment, including digital blood pressure monitors, digital thermometers, body fat analyzers, and nebulizers, Omron Healthcare employs 2,683 staffers worldwide and recorded sales of 50.6 billion yen (fiscal year ending March 31, 2005).
Press Contacts:
Kazuko Kuriyama
Omron Healthcare, Inc.
+1-847-247-5637
Kazuko.kuriyama@omron.com
Kelly Harder
Edelman
+1-312-297-7426
Kelly.harder@edelman.comWeb site: http://www.omronhealthcare.com
Contact:
Kazuko Kuriyama of Omron Healthcare, Inc., +1-847-247-5637,
Kazuko.kuriyama@omron.com , or Kelly Harder of Edelman,
+1-312-297-7426, Kelly.harder@edelman.com