Mediq Increases Its Homecare Market Share in the US with the Acquisition of Diabetes Specialty Center Through Its Byram Healthcare Subsidiary

WHITE PLAINS, New York--()--Mediq, international supplier of medical devices and pharmaceuticals which owns Byram Healthcare, announced today the acquisition of Diabetes Specialty Center (DSC). Salt Lake City-based DSC delivers insulin pumps, continuous glucose monitors and related supplies to frequent-users, insulin-dependent diabetics. This acquisition will further solidify the White Plains, NY-based Byram in the number 4 position of this large but fragmented market.

Strategic rationale

  • The acquisition is in line with Mediq’s strategy of further expanding its direct activities, particularly in the US, increasing the scale of Byram’s operations
  • It provides Byram with an entry into the growth market of insulin pumps, continuous glucose monitors and related supplies for frequent-users, insulin-dependent, Type-1 diabetes patients
  • DSC’s business model is very similar to that of Byram, enabling smooth integration
  • The acquisition allows Mediq to achieve cost synergies in back-office processes

Financial details

  • DSC realized sales of $26 million (€19.5 million) in 2011
  • DSC’s EBITA margin is slightly below the D&I segment average
  • The acquisition price of DSC amounts to $16 million (€12 million)
  • The acquisition will be financed from existing credit facilities
  • Mediq expects to achieve the ROCE pre-tax target of 15% by 2014

DSC, established in 2000, sells equipment (insulin pumps, continuous glucose monitors) and related supplies and medication, mainly to insulin-dependent, Type-1 diabetes patients. These patients are frequent users to a much greater extent than Type-2 insulin-dependent patients. Byram currently has no market share in the insulin pumps and continuous glucose monitors market. DSC intends to be the center of excellence for pumps and continuous glucose monitors as part of Byram. DSC, with 84 employees, has grown quickly over the past several years, in line with the market.

Marc van Gelder, CEO of Mediq, said: “This is a logical step in the buy-and-build strategy we have been pursuing in our Direct and Institutional business over the past six years. With its scalable infrastructure, Byram Healthcare provides us with a platform for further growth in the large but fragmented US market. This acquisition greatly enhances our position in a very interesting market segment. It also presents us with the opportunity to grow on a local scale, which is necessary to secure low costs to serve the market.”

Marcel van den Broek, Executive Vice President of Mediq Direct & Institutional: “We expect a smooth integration into our current operations. DSC’s business model is very similar to that of Byram. In addition, DSC’s CEO will be a member of Byram’s management team.”

The acquisition is expected to be finalized around the end of the second quarter of 2012.

Byram Healthcare is a leading provider of disposable medical devices to patients with chronic diseases. It has more than 40 years in service, and is headquartered in White Plains, NY. Byram serves 300,000 patients nationwide with 525 employees from 12 service locations and 4 distribution centers located across the US. For more information, see www.byramhealthcare.com.

Mediq is an international company delivering medical devices, pharmaceuticals and related care services. The patient is at the center of everything we do. Mediq delivers via three channels: direct to people’s homes (Direct), to professional customers such as hospitals, nursing homes and GPs (Institutional) and via Mediq Pharmacies. Mediq operates in 15 countries. Its head office is located in Utrecht, the Netherlands. The company was founded in 1899 and has around 8,300 employees. Mediq is listed on NYSE Euronext Amsterdam. It reported € 2.7 billion in net sales in 2011. For more information, see www.mediq.com.

Contacts

For Byram Healthcare
Investor relations:
Catrien van Buttingha Wichers
T +31 (0)30 282 16 09
M +31 (0)6 5339 3665
catrien.van.buttingha@mediq.com
or
Press:
Ynte Hoekstra
T +31 (0)30 282 10 61
M +31 (0)6 22 19 72 04
ynte.hoekstra@mediq.com

Release Summary

Mediq increases its homecare market share in the US with the Acquisition of Diabetes Specialty Center through its Byram Healthcare subsidiary

Contacts

For Byram Healthcare
Investor relations:
Catrien van Buttingha Wichers
T +31 (0)30 282 16 09
M +31 (0)6 5339 3665
catrien.van.buttingha@mediq.com
or
Press:
Ynte Hoekstra
T +31 (0)30 282 10 61
M +31 (0)6 22 19 72 04
ynte.hoekstra@mediq.com