Philips acquires Meditronics

Philips has acquired medical equipment maker Meditronics for an undisclosed amount.

The purchase of the Mumbai-based company is the organisation’s second in three months, following the securing of Alpha X-Ray Technologies in September.

Speaking at a press conference in New Delhi, Philips chief executive officer Gerard Kleisterlee said the acquisition gives the company “strong manufacturing capabilities” and improves its presence in the country.

He continued, saying healthcare is “recession-proof” and so the company is “safe”.

“There is a bigger slowdown in the US and Europe for consumer durable products. But some essential segments such as mother and babycare products and electric shavers are doing well,” Mr Kleisterlee added.

Philips has also acquired two firms in Brazil and one in China, as part of the company’s plans to move research and development to emerging markets.

The organisation’s healthcare business accounted for nearly a quarter (24 per cent) of overall sales, reaching 6,740 million euros (5,700 million pounds).

Headquartered in Andover, US and Best in Holland, Philips employs 32,500 people around the world, of which 6,000 are service technicians.

It has research and development at 22 sites, alongside approximately 40 medical and technical institutions, with sales and service operations in more than 63 countries.