Bengaluru– Leading Indian medical devices major Trivitron Healthcare Ltd has acquired majority stake in a Turkish healthcare firm for 5 million euros (Rs 37 crore), the Chennai-based company said on Wednesday.
“We have invested five-million euros ($5.5 million) to buy 60 per cent equity stake in Turkish firm Bome Sanayi Urunleri Dis Tic Ltd, whose promoters will retain 40 per cent post-acquisition,” said Trivitron chairman G.S.K. Velu in a statement here.
Bome’s three promoters, include its founder Mehmet Demirel, chief executive Gulsah Sonmez and co-founder Zeynep Demirel. They had 55 per cent and 20 per cent each equity stake in their company before the acquisition.
The Turkish firm reported sales turnover of 22 million Turkish lira ($7.6 million) in calendar year 2015.
The 19-year-old and Rs 700-crore Trivitron makes medical devices and delivers cost-effective services to the underserved through inorganic synergies with local and global firms. It exports its various products to 165 countries, worldwide.
As the Ankara-based Bome is a leading maker of in-vitro diagnostic device, the acquisition will give Trivitron access to markets in Turkey, Middle East (Gulf), Africa and South East Asia and its production facility, research labs and a newly set up screening laboratory.
“Bome has 100 per cent market share in new born screening tests in Turkey, as it screens 1.8 million babies and 10 million tests per year,” Velu said on the occasion.
With nine manufacturing units in India, Finland and Turkey, Trivitron expects to grow significantly in the region, as its products are marketed under brand name Trimaris and exported to Egypt, Iraq, Kenya, Portugal, Syria and Sudan.
“The buyout brings in growth capital and distribution network for Bome, which has been in diagnostics since 1989 and conducting new born screening tests in the past eight years for the Turkish government,” Velu recalled in the statement.
With manufacturing units at Ostim and Ankara in Turkey and labs in Ankara and Istanbul, Bome’s production lines include new born screening tests, haematology solutions, clinical chemistry reagents, rapid urea tests, coagulation reagents and sterile & non-sterile deionized water.
The buyout will also help Trivitron gain expertise on running low-cost new born screening programmes, which India is yet to launch in public-private partnership mode.