Healthcare, medical and pharmaceutical products specialist EBOS Group (ASX: EBO) has increased its shareholding in Transmedic Pte Ltd (Transmedic) from 51% to 90%.
Transmedic is one of the largest independent medical device distributors in South East Asia with a presence in seven countries, being Singapore, Indonesia, Malaysia, Philippines, Thailand, Hong Kong and Vietnam.
Transmedic has long term relationships with global medical device manufacturers, representing their products in hospitals and other clinical settings across several therapeutic channels, including spine, orthopaedics, cardiology, ophthalmology and radiation therapy.
EBOS acquired its original 51% interest in Transmedic as part of the LifeHealthcare acquisition, which completed in May 2022. The purchase price for the additional 39% shareholding in Transmedic is approximately $135 million. The purchase price was funded from existing debt facilities and the transaction is expected to be immediately marginally EPS accretive.
Transmedic major shareholder and Chairman, TS Lee, has agreed to retain a 10% shareholding in Transmedic and remain Chairman for a further approximately two years. An option arrangement has been entered into that will facilitate EBOS moving to 100% ownership at the conclusion of this period.
Transmedic has performed very well under EBOS’ ownership. This transaction reflects our confidence in the business and is consistent with our strategy to explore further growth opportunities in South East Asia. We are delighted that TS Lee will remain our partner in Transmedic and that EBOS will continue to benefit from his extensive knowledge of the business and the region,” EBOS CEO, John Cullity, said.